Leverage is very important for retail traders like us. Without leverage you need huge capital to gain good profit percentage as a pair moves very little in terms of currency. I don't think that much about leverage proportion as my risk percentage is very low.
Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.
Leverage is a strategy of using borrowed to control larger trade sizes. It's a double edged sword which increases the potential return of an investment and loss as well. Therefore, a good risk management is required to deal with this.
Leverage is important and useful, but only if it is wisely used. It is that weapon, which no doubt can help you to trade and earn extra, but one single wrong decision, taken with impracticality can cost you huge.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.