Leverage just has one benefit in my knowledge, it can help any forex exchange trader to carry more trades with less money, thus presenting the chance of a trading making more profits with less money.
Printable View
Leverage just has one benefit in my knowledge, it can help any forex exchange trader to carry more trades with less money, thus presenting the chance of a trading making more profits with less money.
More leverage means unlimited problem. For that some beginner make loser.
I suggest 1:50 to 1:100 for beginner. After some days also possible to increased 1:200.
More move means more destroy. Walk slow carefully no binding for success.
Leverage also opportunity but If we take it more our margin increased so that we happen some problem such as Over trading and greed. More leverage make problem to control margin specially for new trader.
In forex trading so many benefits of leverage , for the beginner's its necessary to use the low leverage but its depend on every trader that how the trader choose their leverage, but in my opinion always select the leverage when we get the practice on demo its better ways to learn the leverage.
no doubt that this matter must be alleged by one of the trader or professionals high leverage is one kind of trap. Trader are encourage to use high leverage to make big profit and in a short time. so makes your plan weather it is high or low....
I think we should use laverage as possible so that in case of floating minus can still make an order, if we only use a small laverage case of floating minus is the only way to be able to order again is to cut loss on that entry, if you are not willing to cut loss, small laverage would limit our trading.
Higher the leverage higher the returns you can expect but simultaneously higher the risk your trades are going to face. Very low leverage will not able to produce significant returns so you should use a leverage that is medium and which you feel safe, I use a leverage of 50 therefor.
Very right, the highest leverage is only beneficial for an experienced trader who can use it with his abilities to make a small capital to grow but for an inexperienced trader high leverage may be proved a killer of his account because he may misuse it very badly.
While using leverage you should know your trade as to how much risk you want to take, in case of you are sure that your trade will not get into 1% loss, you can chose 1:100 leverage and broker will only close your trade if your trade goes to 1% loss. If you want your trade to stay upto 10% loss use 1:10 leverage.
Leverage is Target credit provided by brokers Traders to trade, debt ratio.
the higher leverage is used, the greater margin that can be used as capital for trading and for the defense.
the greater margin held as capital for trading, it has a greater temptation to use it in large quantities in order to pursue greater profits. so having a weak resistance and will be easily exposed to Margin Call.
but if the margin is used to trading only 5% or less, then it has a strong durability and safe for trading.