How true is High leverage = High risk?

Nov 12, 2020 at 07:22
4,151 Visa
61 Replies
forex_trader_1955784
Medlem sedan Sep 30, 2020   13 inlägg
Nov 12, 2020 at 07:22
Are high and low leverage two sides of the same coin? I have started fresh in forex and not able to make a right judgment for a good leverage.

Not sure how correct it is to say there are high risks with high leverage.

Recommendations needed from experience holders.
Medlem sedan Nov 02, 2020   34 inlägg
Nov 12, 2020 at 07:55
Leverage is like a double edged sword so it should be used wisely.
Medlem sedan Sep 30, 2020   26 inlägg
Nov 12, 2020 at 08:26
Leverage sure is a double-edged sword, but without leverage trading would not bring in any scalable results. That is unless you have heaps of money to invest. How much would a movement of few pips give on 3 or 4k. That also might be considered a big amount for a lot of current investors in the market. Considering most are part-timers, and some even college lads.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.
Medlem sedan Oct 01, 2020   37 inlägg
Nov 12, 2020 at 10:57
I find it too risky to use leverage. Can’t imagine owing money to the broker and defeat the whole purpose of being in the market.
Medlem sedan Aug 26, 2020   78 inlägg
Nov 12, 2020 at 11:38
Of course, the best option would be to trade with your own funds, but, unfortunately, not everyone can afford it, so leverage is a very good help.
Medlem sedan Mar 01, 2018   13 inlägg
Nov 12, 2020 at 13:16
I do not think that ECN brokers offer negative balance protection. Using high leverage with a stop loss is fine unless the market turns against you massively and you end up millions of $$ in debt
Medlem sedan Aug 17, 2020   123 inlägg
Nov 12, 2020 at 16:14
I think it is correct to say there is high risk involved when using high leverage.

But of course, trading is risky to some degree no matter what form of trading you do. Whether you trade with or without leverage, it is possible to trade in a smart way, managing risks well, or in a silly way, losing more than necessary.

However, the point of leveraged trading is amplifying your gains, but if you think about it, your losses will be amplified, too. If you don't have experience, experiment in a demo account or cent account first, and avoid doing real leverage trading until you are confident you can be profitable. Make sure to learn how to place orders, especially stop loss orders correctly, and when choosing a broker, be aware of their liquidation policies.
Medlem sedan Jul 20, 2020   232 inlägg
Nov 19, 2020 at 18:26
Leverage is very profitable for those who have proper knowledge about it. If you don't have any knowledge about leverage you will face a great lose if you use high leverage.
Medlem sedan Oct 01, 2020   49 inlägg
Nov 20, 2020 at 06:29
It doesn’t need to, they simply don’t allow short selling. But sadly there’s no forex option there. So I had to make an account with Fxview. Zeroed in on this one cause of the wider currency options. And ya, they very clearly offer negative protection.
Medlem sedan Jul 01, 2020   27 inlägg
Nov 20, 2020 at 13:34
Fxview?? Never heard! Another offshore I bet
forex_trader_1955784
Medlem sedan Sep 30, 2020   13 inlägg
Nov 20, 2020 at 13:41
EbonyJones posted:
Leverage is very profitable for those who have proper knowledge about it. If you don't have any knowledge about leverage you will face a great lose if you use high leverage.
Even I have heard people saying that you only win big if you risk big. That also in my opinion, need to done with a right plan in place.
Medlem sedan Jun 30, 2020   47 inlägg
Nov 21, 2020 at 04:41
Well, fxview’s been around for awhile now. Dug into their company’s history and credentials a lot before opening ECN with them. I think they’re a good choice for those looking for a high leverage, they are giving up to 500x. Spreads are the lower side too. And I don’t think there’s anything wrong with offshore brokers as long as they are regulated. A fixed and a rigid mindset can be very limiting to a trader.
Medlem sedan Jul 09, 2020   39 inlägg
Nov 23, 2020 at 05:42
Even forextime offers it. So does fp markets. These are the brokers I use/ have used.
Medlem sedan Nov 23, 2020   46 inlägg
Nov 23, 2020 at 14:15
Indeed, it also depends on the broker how much the risk of using leverage will be increased?
Medlem sedan Feb 21, 2019   5 inlägg
Nov 23, 2020 at 16:29
How true is High leverage = High risk?
Falso
En mi opinión un mala gestión del capital es lo que causa perdidas muy grandes.
 El apalancamiento es una herramienta, mas bien un beneficio que utilizas a tu favor, si no sabes gestionar el capital entonces el riesgo no es el apalancamiento es tu gestión de capital.
Medlem sedan Apr 25, 2020   119 inlägg
Nov 24, 2020 at 12:38
Before using leverage, always scientifically check the information and conditions of the book you trade.
Medlem sedan Oct 01, 2020   49 inlägg
Nov 25, 2020 at 11:57
I’m a stickler when it comes to using pnl. Never have, never will trade without properly scrutinizing the potential losses and profits in every trade, no matter worth a lot of money or small.
Medlem sedan Jul 20, 2020   298 inlägg
Nov 26, 2020 at 05:18
High leverage trading can put investments at risk. Every trader should use the lowest leverage. This protects the trading investment.
Medlem sedan Sep 30, 2020   26 inlägg
Nov 26, 2020 at 09:19
How long have you been trading for? I always follow the trend. And follow the ATR method of stop loss.
Medlem sedan Aug 26, 2020   1 inlägg
Nov 26, 2020 at 10:04
Leverage has almost nothing to do with risk, if inspected on its own.
Lot size, leverage, Stop Loss and what % the stop loss is at compared to your equity is what you'd use to calculate risk.
You should probably take some classes before trading if you are asking these types of questions
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