High Leverage

Leverage is a boon but if not used carefully can become a bane. Traders should choose the leverage wisely and should not trade it if they have any doubt regarding the trade.

high leverage always contains high risk , so we should be more careful when trading in a real account.

If you are not experienced. Limit your leverage to 50:1 at most

Leverage is a special facility that is provided by a broker but what I suggest traders avoid trading using high leverages because it can cause huge losses in the end. Due to leverage, a trader can take risk more than his invested capital. Leverage increases traders’ profit and so traders jump onto using it at any cost.

Traders should use high leverage wisely and should have excellent trading skills for trading. Leverage is a powerful tool which can enhance profits if the trader has appropriate trading skills. But it can also blow up the trading account and put the trader into debt if not used carefully.

Fear of selecting unreliable broker is the cardinal factor. Maximum brokers show bogus certification that is really a risk factor for traders. You can go for any ECN broker for the high security. It’s essential factor for you to have security from your broker.

Retail traders with small-budget trading can take advantage of high leverage, but reckless using position size when choosing high leverage can be disastrous for account trading and maybe lead to quick margin calls, and trading is not gambling.

High leverage poses a risk to beginning traders. However, if you are an expert in forex and have sufficient knowledge, you can use high leverage to profit more from this market.

FXOday posted:
Retail traders with small-budget trading can take advantage of high leverage, but reckless using position size when choosing high leverage can be disastrous for account trading and maybe lead to quick margin calls, and trading is not gambling.

Exactly. Not the leverage but the position sizes are the dangerous key.

No wonder high leverage is appealing to many traders as it offers high returns. But one needs to keep in mind that high leverage also means high loss. So it is very important that while choosing high leverage, proper risk management should be taken into consideration.