High Leverage

I think retail traders with small capital tend to use high leverage.
For example a pro trader inside a bank or a firm managing millions of dollars would be happy with around 20% annual return and their risk management is totally different so they dont use high leverage or probably they dont use leverage at all.
On the other hand most of us retail traders, we play around with our 1k accounts and for us earning 20%=$200 a year, is not a very good return.
I think as the trading capital grows, it decreases the leverage over time.
Like... i dont really care if i lose $100 on a trade on my 1k account, which is 10%, bcoz i can make it back the next day. But imagine the pain losing 10% on a trade on your 1 million dollar account, which would be losing a hundred thousand dollars on that day. Now that would hurt :)

So i guess reducing leverage comes naturally as your account grows.

Gabor33 posted:
I think retail traders with small capital tend to use high leverage.
For example a pro trader inside a bank or a firm managing millions of dollars would be happy with around 20% annual return and their risk management is totally different so they dont use high leverage or probably they dont use leverage at all.
On the other hand most of us retail traders, we play around with our 1k accounts and for us earning 20%=$200 a year, is not a very good return.
I think as the trading capital grows, it decreases the leverage over time.
Like... i dont really care if i lose $100 on a trade on my 1k account, which is 10%, bcoz i can make it back the next day. But imagine the pain losing 10% on a trade on your 1 million dollar account, which would be losing a hundred thousand dollars on that day. Now that would hurt :)

So i guess reducing leverage comes naturally as your account grows.

I have also noticed this point; whatever, retail traders should follow the rules of money management as well as the risk management so carefully!

Roberto21 posted:
leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  

Small trading leverage is the best choice; besides, without following the money management rules, success is impossible!

Roberto21 posted:
leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  

Leverage is not any issue.
It is simply tool which allows you to place bigger trades with smaller deposit.
Bigger trades bring bigger profits or losses.
Depending on your trading.

togr posted:

Roberto21 posted:
leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  

Leverage is not any issue.
It is simply tool which allows you to place bigger trades with smaller deposit.
Bigger trades bring bigger profits or losses.
Depending on your trading.

You are right; even it’s a complicated issue at all! But I guess; maybe he is changing the leverage features for multiple times!

Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

togr posted:

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!

Adribaasmet posted:

togr posted:

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!

High leverage is better for trader with small account because they can trade with small Lot size.

TheGreatRecycler posted:

Adribaasmet posted:

togr posted:

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!

High leverage is better for trader with small account because they can trade with small Lot size.

I don’t think so; because I see, high leverage is more dangerous to the small account holders!

Whatever the trading equity you have; that doesn’t mean much; you have to follow the money management rules; otherwise MC will be very common issue to you!

Adribaasmet posted:

togr posted:

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!

And regulated brokers offers unrealistically low leverage :)

ChristianBeach posted:
Sadly high leverage trading is not possible in US and EU any more. This is real problem for many trader and may end up killing the retail Forex market in these geographies

High leverage trading is still possible worldwide because there are some brokers that offer high leverage and accept member registrations from US, EU and other international members.

TheGreatRecycler posted:

Adribaasmet posted:

togr posted:

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!

High leverage is better for trader with small account because they can trade with small Lot size.

High leverage is more profitable for a trader with a small account balance but with a profitable trading strategy

aa33030 posted:

TheGreatRecycler posted:

Adribaasmet posted:

togr posted:

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!

High leverage is better for trader with small account because they can trade with small Lot size.

High leverage is more profitable for a trader with a small account balance but with a profitable trading strategy

Well profitable trading strategy is a must. Have nothing to do with leverage though :)

togr posted:

aa33030 posted:

TheGreatRecycler posted:

Adribaasmet posted:

togr posted:

blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO

Well without leverage FX would remain domain of the rich

Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!

High leverage is better for trader with small account because they can trade with small Lot size.

High leverage is more profitable for a trader with a small account balance but with a profitable trading strategy

Well profitable trading strategy is a must. Have nothing to do with leverage though :)

Trading strategy is a different issue; no connection with the money management!

higher leverage allows to stomach larger floating

nick3232 posted:
higher leverage allows to stomach larger floating

I agree with this. A small account combined with high leverage is a deadly combination. But alas, it is the only option in some cases. However, there really is no room for mistakes.

Leverage is good for making money. But as a new trader you can not take risk by using high leverage. High leverage means high risks