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High leverage = High risk?

Markteshorn
Mar 04 2021 at 11:24
5 inlägg
For me, leverage is the way of reducing the amount of trading capital that must be used. It also releases the trading capital for other trades.
turnipfollow
Mar 04 2021 at 13:13
27 inlägg
Leverage is for professional traders who have been in the market for quite some time and know what it can do for them. When new traders are told not to use leverage, it means that they should trade like an amateur and not a professional. Every time I trade a currency pair, I use the highest leverage possible with swissquote because I believe that as a trader with years of experience, the more leverage, the better the trades.
unsightlydray
Mar 05 2021 at 06:55
53 inlägg
Paulbraighte posted:
Choosing the right leverage for your trades is not a one size fits all circumstance. It depends on how much capital you have and how much you are willing to risk. As a beginner, instead of looking for the best leverage you can use, you must focus on what you should know when you start forex trading.
And won’t that include how much leverage to use ? :)

Johnathankim
Mar 05 2021 at 09:27
29 inlägg
Honestly, I don’t see any harm in using some leverage. You can always keep it low and work your way around it. Risking less is better if you are learning step by step.
Gareylinn509
Mar 05 2021 at 11:25
34 inlägg
turnipfollow posted:
Leverage is for professional traders who have been in the market for quite some time and know what it can do for them. When new traders are told not to use leverage, it means that they should trade like an amateur and not a professional. Every time I trade a currency pair, I use the highest leverage possible with swissquote because I believe that as a trader with years of experience, the more leverage, the better the trades.
The way I see it, I feel like using leverage can be a big liability since the principle cost of leverage has to be paid on any transaction or trade. There is also a risk with it and a trader is always at the risk of getting a margin call.
Gleywilleyy
Mar 05 2021 at 13:09
47 inlägg
@Garey I used to think that too but when I actually used leverage, it kind of increased my capital efficiency. It also works well during low volatility periods. I was recently trading with ib and I worked with some highly leveraged positions but the result was pretty good so there’s that. I think there is more to leverage and we can actually use it for our benefit. Just sharing my 2 bits here.
Johnathankim
Mar 06 2021 at 09:44
29 inlägg
Gleywilleyy posted:
@Garey I used to think that too but when I actually used leverage, it kind of increased my capital efficiency. It also works well during low volatility periods. I was recently trading with ib and I worked with some highly leveraged positions but the result was pretty good so there’s that. I think there is more to leverage and we can actually use it for our benefit. Just sharing my 2 bits here.
Yeah. Leverage can be quite helpful at times. Better to use it wisely.
Daniel993
Mar 06 2021 at 13:30
46 inlägg
High leverage is considered a risk because the loss value is more than the invested capital, but it is also an advantage to use high leverage because the profit earn is doubled.
unsightlydray
Mar 08 2021 at 07:06
53 inlägg
Daniel993 posted:
High leverage is considered a risk because the loss value is more than the invested capital, but it is also an advantage to use high leverage because the profit earn is doubled.
Yes, it is totally up to the skills of the trader, how leverage is used.
AmDiab
Mar 08 2021 at 11:28
718 inlägg
high leverage not high risk always if you know how to manage risk ,
 because most of the time we trade with no analysis , as a result we become loser.
deborahbennett
Mar 08 2021 at 12:37
23 inlägg
Johnathankim posted:
Gleywilleyy posted:
@Garey I used to think that too but when I actually used leverage, it kind of increased my capital efficiency. It also works well during low volatility periods. I was recently trading with ib and fxview and I worked with some highly leveraged positions but the result was pretty good so there’s that. I think there is more to leverage and we can actually use it for our benefit. Just sharing my 2 bits here.
Yeah. Leverage can be quite helpful at times. Better to use it wisely.
It is more about being comfortable in what you are doing. If you are conservative and don’t like to take many risks, a lower leverage level like 1:5 or 1:10 can be more appropriate for you. But if you have gained some experience and know that you can manage risk with even high leverage, you can go beyond 1:100 also.
BarronLucas
Mar 08 2021 at 13:25
31 inlägg
Using high leverage does have higher risks and possibilities of blowing up your account.

When a trader uses high leverage and losses in a trade the loss is higher as the leverage and would be difficult for the trader to invest in the next trade.
unsightlydray
Mar 09 2021 at 06:50
53 inlägg
AmDiab posted:
high leverage not high risk always if you know how to manage risk ,
 because most of the time we trade with no analysis , as a result we become loser.
Trading without analysing the market? That would be like a death sentence for the account :)

unsightlydray
Mar 09 2021 at 06:51
53 inlägg
BarronLucas posted:
Using high leverage does have higher risks and possibilities of blowing up your account.

When a trader uses high leverage and losses in a trade the loss is higher as the leverage and would be difficult for the trader to invest in the next trade.
But using leverage with a proper market research and analysis would do us good right?

Numeromatt
Mar 09 2021 at 12:14
38 inlägg
deborahbennett posted:
Johnathankim posted:
Gleywilleyy posted:
@Garey I used to think that too but when I actually used leverage, it kind of increased my capital efficiency. It also works well during low volatility periods. I was recently trading with ib and fxview and I worked with some highly leveraged positions but the result was pretty good so there’s that. I think there is more to leverage and we can actually use it for our benefit. Just sharing my 2 bits here.
Yeah. Leverage can be quite helpful at times. Better to use it wisely.
It is more about being comfortable in what you are doing. If you are conservative and don’t like to take many risks, a lower leverage level like 1:5 or 1:10 can be more appropriate for you. But if you have gained some experience and know that you can manage risk with even high leverage, you can go beyond 1:100 also.
True, in a way! But don’t you think that the forex market has no place for those who are not ready to take risks. At some point in time, every trader will have to take one or the other kind of risk.
mortanlais
Mar 10 2021 at 10:19
21 inlägg
ddarko3 posted:
unsightlydray posted:
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?
Technically leverage helps you to gain more but the problem with them is that you can also lose completely
Have you ever lost a lot of money like this?
Breonnataylor
Mar 11 2021 at 06:52
28 inlägg
Numero, It’s right that forex investments offer potential profits but at the same time, also have downside risk. Sometimes, you may lose more than the value of your transaction when trading on margin. But if you already have been in the market for some time and have learnt risk management, things can get easier for you. My first leverage ratio was 1:5 with oanda. I got an idea about using it and in my next trade, I increased the ratio to 1:50. It turned out to be a profitable trade later. Had I not taken the risk, I would have not made that much.
unsightlydray
Mar 11 2021 at 07:07
53 inlägg
That is exactly my thought. Without making calculated bold moves, making money can be near impossible in the forex market. Or any other financial market to think of it.
unsightlydray
Mar 11 2021 at 07:08
53 inlägg
mortanlais posted:
ddarko3 posted:
unsightlydray posted:
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?
Technically leverage helps you to gain more but the problem with them is that you can also lose completely
Have you ever lost a lot of money like this?
I am sure there’ll be mixed responses for this. Some traders would have gained heavily while some would have lost it all, would ultimately depend upon every trader’s strategy used isn’t it?!

Roberto21
Mar 12 2021 at 06:41
364 inlägg
Maximum traders in Forex like to trade with high leverage for making profit instantly. But traders who make profit consistency , I don’t think they use high leverage. They way I see it. High leverage gives us the benefits not to worry about margin requirements and one less thing to focus on. Abusing leverage can be costly for traders.
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