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High leverage = High risk?
Medlem sedan Oct 29, 2020
53 inlägg
Feb 08, 2021 at 08:04
Medlem sedan Oct 29, 2020
53 inlägg
forextrader777 posted:Yes, I am taking my sweet time to be thorough with trading concepts.
High leverage attracts new traders but few of them know the actual working of leverage. I would recommend that before pushing yourself into the trades that need margin, try to understand the concept clearly, otherwise it can wipe off your account balance.
Medlem sedan Sep 18, 2018
11 inlägg
Feb 15, 2021 at 10:34
Medlem sedan Sep 18, 2018
11 inlägg
Everyone should use fixed stops, even if it is a safety stop loss wider than normal. All it takes is some political event to shake the markets just after you entered to cause massive price spike. Without a safety SL you could make massive losses
Feb 16, 2021 at 07:57
Medlem sedan Feb 16, 2021
29 inlägg
It seems to me that the risk does not depend on the size of the leverage, on our ability and willingness to take risks.
Medlem sedan Nov 24, 2020
28 inlägg
Feb 16, 2021 at 10:04
Medlem sedan Nov 24, 2020
28 inlägg
@Eric ideally, you shouldn’t risk more than 1 or 2% of your trade. It also depends upon the trading style of a person and how much they’re willing to risk. For example, I trade with IB and Fxview and my risk management is such that I don’t go beyond risking 2% of it. This helps me maintain a balance and minimises potential losses too.
Feb 17, 2021 at 12:19
Medlem sedan Nov 16, 2020
16 inlägg
Garey! It's okay to not take unnecessary risks but still I would say take calculated risks. This would be much beneficial for you.
Feb 18, 2021 at 08:01
Medlem sedan Nov 24, 2020
12 inlägg
It is a great advice Russel, that in the beginning try to trade micro lots, and use innovative strategies for the same.
Medlem sedan Dec 11, 2020
110 inlägg
Feb 22, 2021 at 09:45
Medlem sedan Dec 11, 2020
110 inlägg
Yes
High leverage = High risk = High chance of wiping out your account/funds
High leverage = High risk = High chance of wiping out your account/funds
Feb 22, 2021 at 11:20
Medlem sedan Oct 23, 2018
29 inlägg
Only if you dont know how to use it. If you get to a good stage of trading then sometimes you can use it to your advantage
Feb 23, 2021 at 09:54
Medlem sedan Sep 30, 2020
26 inlägg
For me, 1:100 is a good leverage to use. There is no point in risking a big amount that if lost, can pose a heavy burden on your finances. Give it a thought before you take the risk of using high leverage.
Medlem sedan Oct 16, 2020
137 inlägg
Feb 23, 2021 at 10:55
Medlem sedan Oct 16, 2020
137 inlägg
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Medlem sedan Oct 29, 2020
53 inlägg
Feb 24, 2021 at 08:15
Medlem sedan Oct 29, 2020
53 inlägg
78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Feb 25, 2021 at 13:56
Medlem sedan Jun 08, 2020
44 inlägg
High leverage is considered risky because when a trader loses in a trade with high leverage, the loss also results in a large amount, whereas if the trader can convert it into a successful trade, the profit earned is more than the invested amount.
Medlem sedan Jul 23, 2020
869 inlägg
Feb 25, 2021 at 17:28
Medlem sedan Jul 23, 2020
869 inlägg
New traders should not use high leverage in trading. Traders need to control and minimize the risk for using high leverage.
Feb 27, 2021 at 11:33
Medlem sedan Oct 23, 2020
37 inlägg
See, no doubt that there is a high level of risk with high leverage but the only thing matters is how much knowledge and experience you have for taking such risks.
Feb 27, 2021 at 13:25
Medlem sedan Aug 28, 2020
37 inlägg
Using higher leverage in a live trade is risky to traders with less or no experience in trading because if trader losses with higher leverage, it is possible for those traders to blow up their accounts.
Medlem sedan Jul 20, 2019
373 inlägg
Feb 27, 2021 at 14:25
Medlem sedan Jul 20, 2019
373 inlägg
unsightlydray posted:78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Actually 'leverage' just means that you'll get a 'credit' from a bank or liquidity provider of the broker. A max. account leverage of 1:500 means that you can trade with a maximum of 500k per trade (!) while you'll only throw in 1k of your own money. But if you'll lose 2k in that trade, where does the other 1k come from then? Right, it comes from your deposits (and that's how can get into debt). Most professional brokers have a negative balance stop out. But the higher your leverage the higher the chance you'll get to this stop out.
patience is the key
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