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Leverage is useful or not ?

Sep 01, 2017 at 10:09
4,025浏览
100 Replies
会员从Aug 11, 2017开始   886帖子
Sep 01, 2017 at 10:09
By using leverage you will be win or not , it depends on your trading plan . With real trading plan including exact risk managing plan it is obviously possible to make profit very quickly by using high leverage despite of having small balance. on the other hand , in spite of sufficient trading balance that’s not possible to ensure profit by leverage , if you don’t know how to manage risk.
会员从Apr 18, 2017开始   920帖子
Sep 03, 2017 at 06:33
Of course, leverage is very important service for me! Because I am trading with below 1K! But, I need a logical leverage facility in order to my strategy! Yes, I am trading with 1:100 leverage!
会员从Aug 09, 2017开始   95帖子
Sep 03, 2017 at 06:33
Leverage is simply the credit offered by the broker to trade higher volume. Leverage is a double edge sword. It can result in huge profit or substantial loss. it allows an investor to grow his market exposure to a level that exceeds the initial investments. It always surrounds risks , so it is more appropriate to acquire proper risk management approach before using it.
Street_Trader
forex_trader_383653
会员从Dec 12, 2016开始   8帖子
Sep 03, 2017 at 06:40
It's useful when you adding to winning trades.
会员从Apr 19, 2013开始   2帖子
Sep 03, 2017 at 06:44
Your comments are generally good. The key is not not over-leverage. Even if you have a trading system with positive expectancy, you can still blow up your account with too much leverage. That is because trading systems with long term positive expectancy still necessarily have drawdowns, and too much leverage will wipe you out during those drawdowns.

There are risk-of-ruin calculators out there, or even more conservative risk-of-drawdown calculators out there which can help calculate the optimal leverage for your situation.
Username12
forex_trader_451135
会员从Aug 11, 2017开始   6帖子
Sep 03, 2017 at 06:51
I'm a little on the aggressive side. I trade 1K for every $100 in the balance of my account.
会员从Aug 09, 2017开始   95帖子
Sep 06, 2017 at 14:54
In my trading career, I always like to trade high leverage for making profit very rapidly , now I am comfortable with 1:1000 leverage which is very supportive to trade in a high lot in spite of small balance. But when markets moves at random , I use lower leverage for avoiding risk.
会员从May 15, 2010开始   1帖子
Sep 06, 2017 at 17:40
When you are trading out of control, high leverage will kill your account in no time.
会员从Apr 18, 2017开始   718帖子
Sep 07, 2017 at 14:54
Admoni posted:
In my trading career, I always like to trade high leverage for making profit very rapidly , now I am comfortable with 1:1000 leverage which is very supportive to trade in a high lot in spite of small balance. But when markets moves at random , I use lower leverage for avoiding risk.

1:1000? This is really too much leverage! Maybe your strategy requires big trading leverage, isn’t? Now I am using 1:100 and I’m comfortable with it.
会员从Sep 07, 2017开始   13帖子
Sep 07, 2017 at 14:55
Admoni posted:
In my trading career, I always like to trade high leverage for making profit very rapidly , now I am comfortable with 1:1000 leverage which is very supportive to trade in a high lot in spite of small balance. But when markets moves at random , I use lower leverage for avoiding risk.

With high leverage you can make high profit rapidly but you can also make huge losses
会员从Feb 12, 2016开始   427帖子
Sep 08, 2017 at 06:22
This question has been asked many times. Leverage is useful if you REALLY know how to use it. Higher Leverage = Higher Risk.
Accept the loss as experience
会员从Feb 22, 2011开始   4862帖子
Sep 10, 2017 at 06:43
TiffanyK posted:
This question has been asked many times. Leverage is useful if you REALLY know how to use it. Higher Leverage = Higher Risk.

Not necesarily
You can wipe account even with low leverage.
So what is the real risk?
Lets say we would like to open 1 lot EURUSD. With stop loss and take profit 10.0 pips. Aiming to gain or loose $100.

A. without leverage
you need 100,000*1.20000 = $120,000 to open trade. In case of profit you make $100 which is 100/120000*100 = 0.08% profit

B. with leverage 1:1000
you need 100,000*1.20000/1000 = $120. To be comfortable lets say you need 1000 balance. In case of profit you make $100 which is 100/1000*100 = 10% profit.

Of course the same apply to loss but that is another aspect. You need to have trading system that of course has higher profitability than 50% so you get more profitable trades than loses(with the same risk/reward).

So to get the same profit of $100 you are risking
A. without leverage $120,000
B. with 1:1000 leverage you risk just $1,000

Risk because quite often some of the brokers just disappear with your money.

If I had 100,000 I would split it to many small accounts at different brokers, different strategies, different pairs to diversify the risk.
会员从Aug 09, 2017开始   95帖子
Sep 10, 2017 at 07:09
High leverage always dangerous so it would be better if we use it in our demo account .in live account we always have to use minimum leverage for avoiding risk, actually leverage allows an investor to grow his market exposure to a level that exceeds the initial investments.
会员从Apr 18, 2017开始   718帖子
Sep 13, 2017 at 13:53
TiffanyK posted:
This question has been asked many times. Leverage is useful if you REALLY know how to use it. Higher Leverage = Higher Risk.

This proportion is correct for the new & low skilled Forex trader only! Good skilled traders can use this opportunity positively.
会员从Sep 13, 2017开始   4帖子
Sep 13, 2017 at 13:54
Leverage is useful as it increase the trading margin and when you trade with the amount more then you deposit it makes profit accordingly even a small fluctuation in price could lead to more Profit. On the other end it increases the risk criteria of a trader as a small low in the market price could lead to a huge lose
会员从Aug 11, 2017开始   886帖子
Sep 14, 2017 at 14:16
It depends on your trading balance. if you have sufficient balance , then you can make profit very rapidly by using high leverage. But if not, it is better to trade with small leverage for avoiding risk.
会员从Aug 09, 2017开始   95帖子
Sep 14, 2017 at 14:17
The leverage is an important financial tool which an investor should consider when choosing a broker , it allows an investor to grow his market exposure to a level that exceeds the initial investments. We can make profit very rapidly by using leverage if we have real money managing plan.
会员从Feb 22, 2011开始   4862帖子
Sep 15, 2017 at 10:03
Mohammadi posted:
It depends on your trading balance. if you have sufficient balance , then you can make profit very rapidly by using high leverage. But if not, it is better to trade with small leverage for avoiding risk.

It is quote opposite

If you have million dollars you can trade 1 lot EURUSD without leverage
If you have like 1,000 you must use leverage.
会员从Sep 12, 2017开始   238帖子
Sep 24, 2017 at 06:42
Leverage is very important as it allows investor to exceed his limits.He can trade in more than what he has in his account.It is an important factor that should be kept in mind before opening trading account with any broker.
会员从Sep 13, 2017开始   2帖子
Sep 26, 2017 at 14:48
Leverage is useful and is an important aspect of trading. I prefer moderate leverage over very high or very low leverage. Whenever I will go for high leverage I will keep any eye on my losses. Every day is a new day in trading and you never know where the market will take you. You might have started with losses and end up in gains and vice-versa. Once you attain a good trading strategy and style, high leverage can yield great profits for you. So I guess more experience and expertise you gain, the higher leverage you can set on your trading.
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