high leverage

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. If you want to make profit very rapidly by using high leverage first of all you have to make sure real risk managing plan , otherwise you can fall a great loss despite of sufficient trading balance.

Capitalinvestfx posted:

BaldoN posted:
Leverage is a knife with two blades:
* if you know what you are doing - it will help you
* if you have no idea - your account is ... dead

absolutly good point need to be vigillent with your mm

I agree 100% make sure your money management takes 100:1 in account. I've been trading over 7 years and started with 100% and still use it
Gp

for newcomers suggest to trade with small leverage, because leverage is an important financial tool which always contains risks. So, as a newcomer first of you have to acquire proper risk management policy by trading in demo account in a long time, this approach help you to see the performance how works high leverage.

I have seen many traders think only high leverage can bring profit very rapidly . but practically despite of high leverage that’s not possible at all to make profit very rapidly by using high leverage , if you don’t have a proper risk management plan . so, before trading we have to ensure that with surely.

High leverage is not bad.
It is not good either.
The outcome depends how you will use it.

At the present I am using 1:10 to 1:100 . more leverage become a killer practically. My broker offering high leverage but wisdom is in using appropriate leverage that is manageable for me easily. If I use much leverage it can low my account any time.

Even 1:100 is high. If you make a $1000 deposit then it is possible that you could owe $100,000!

Gold101 posted:
Even 1:100 is high. If you make a $1000 deposit then it is possible that you could owe $100,000!

But still you risk just 1,000 and you can trade 1 lot trades.
With low leverage you will have to deposit and risk 10,000 or more to get the same trades.

I have seen in order to me, Many traders consider leverage as a borrowed of money. But in order to me , it is not a borrowed money but you use your money (capital) as leverage. Meaning you are betting your own money and increase or decrease the stake of risk by increasing or decreasing your leverage. for example if you use 1:100 leverage that mean if you going to incur loses your loses will be 100 times that your actual loses or if you make profit your profit will be 100 times more than the actual profit.

There is a common thinking that the higher the leverage is, the higher the profit would be. As other members have said before me , leverage can lead to losses as quickly as to profits. I think the leverage you choose depends also on the instruments you prefer to trade. For example some instruments are more 'Expensive' ...

TiffanyK posted:
There is a common thinking that the higher the leverage is, the higher the profit would be. As other members have said before me , leverage can lead to losses as quickly as to profits. I think the leverage you choose depends also on the instruments you prefer to trade. For example some instruments are more 'Expensive' ...

I have opposite feeling as many persons assume LOW leverage is the only way to protect your account. It is not true obviously.
With low leverage you have to deposit = risk more to gain the same profit from the same position.

togr posted:

TiffanyK posted:
There is a common thinking that the higher the leverage is, the higher the profit would be. As other members have said before me , leverage can lead to losses as quickly as to profits. I think the leverage you choose depends also on the instruments you prefer to trade. For example some instruments are more 'Expensive' ...

I have opposite feeling as many persons assume LOW leverage is the only way to protect your account. It is not true obviously.
With low leverage you have to deposit = risk more to gain the same profit from the same position.

Exactly, I may have said that's the common thinking , but certainly not my thinking. So I agree with you: Low leverage is definitely not the only way to protect the account. Risk management is important if you want to apply higher leverage to your account.

BaldoN posted:
Leverage is a knife with two blades:
* if you know what you are doing - it will help you
* if you have no idea - your account is ... dead

completely in agreement with BaldoN ..
one must know what he is doing with the leverage ... and it can become a good tool to 'correct' entries with sudden changes in trend or to enhance your benefits
good day guys..
😄

leverage is what makes Forex possible for retail traders to trade but too high leverage is madness and can wipe out an account

Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

With due respect, I don't agree with you at this point. As per my opinion if you don't trade in demo account with real trading conditions than it is not that much helpful.

maria_taylor posted:

Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

With due respect, I don't agree with you at this point. As per my opinion if you don't trade in demo account with real trading conditions than it is not that much helpful.

@Mohammadi is an bot, the post do not make any sense
@maria_taylor I agree with you. You should always try to trade demo the same as you would trade real account to gain the experience.

The leverage always consider as an important financial tool which an investor should consider when choosing a broker. it always contains risk , so before trading with leverage we the traders have to know how to manage risk

My point of view the leverage is like knife and Sinbad Scimitar Sword in kitchen. there is no need of Sinbad Scimitar Sword to make good dishes. 😎