Leverage is an important too that always comprises enormous risk than other financial tools in Forex trading, so when using leverage make sure strongest trading plan with real MM. Otherwise you can drop a losses.Originally Posted by ;
Leverage is an important too that always comprises enormous risk than other financial tools in Forex trading, so when using leverage make sure strongest trading plan with real MM. Otherwise you can drop a losses.Originally Posted by ;
Low leverage as consistently for beginner. When you are prepared for high leverage, you are all set to lose lump sum of your personal. Thus, begin with leverage along with learning process.
Not just beginners Mate, when it's difficult to forecast the real faction of this market with then it's more suitable to use leverage for almost any sorts of traders for avoiding unfortunate risks that may loser anybody within short time.
Oh yes, you are absolutely no doubt for that, right partner. It's only, the query in this thread is in novice level. Thank you for sharing the elongated version.
According to me personally, low leverage or high leverage is not a bid deal. Its a deal can manage your risk when using leverage.Originally Posted by ;
What you think beginner's degree can handle their risk when using high leverage? Easy answer. It is suitable to use low leverage .Originally Posted by ;
I use 1:50 leverage in demo but at a account I used leverage 1:100, it caused a risk and losses when I had to use leverage in demo to see the functionality it works.
It depends upon trader that he can handle the leverage of his trading function during the live market. It totally a control of risk and money .
Totally agree with you, leverage isn't bad if you know how to do risk management properly.Originally Posted by ;
I don't understand what that fuss is all about?Why should someone loose money with leverage, if somebody use strict money management???
E.g. 5000$ account risking 3 percent each trade with 50 pips SL you could open 1 trade with 0.35 place or more place all up to 0.35 lot.
With leverage 1:200 broker will obstruct 175$ margin on your account.Still plenty of free margin left.Can you you open another place?
No,since you will violate money management(MM) rules.
Could you lost your money,due to high leverage? No,should you stick to MM rules,however if your position will likely be profitable and you will lock your profit,it is possible to allow it to run for profit without breaking up MM rules, and you'll be able to open another place.
Together with leverage 1:20 it's going to be 1750$ blocked in margin and chances of opened transactions are much enthusiast.
Another manner.
I have 5000 dollars for trading.I is likely to make deposit of 1000$ to my broker and keep 4000 on side.I can still employ same MM rules with 1:200 leverage account and keep my money at home.No worries about black swans,poor brokers ,etc..
With lesser leverage,I had to put all my trading money to broker and keep them to hold margin requirements.
So is it high leverage bad?I don't think so.It is a lousy trader's conclusions,why individuals are getting money.