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actually, the leverage is not the problem in trading, this is only the features to save some capital when the traders get some loses and then they still get trading from the remaining capital in their balance..but the trader can set it to get the largest margin and also set the lots size with the small one, so they can hold some floating minus in the big number
leverage is very important in forex trading, if you are a good trader and can make a good strategy for your trading, then you can choose 1:1000 leverage, which means that we will use more margin with a small deposit and can make a good profit...but on contrary, it is more risky. so if someone cannot handle it well...then he will suffer more losses ....
mere khyal se agar aap ka investment kam hai jese ki 100-200$ to hame jyda se jyda leverage use krna chahiye.
jyda leverge ka use kr k kam bade bade lot size main bi trading kar sakte hai.
lekin high leverage k saat hame keval money management main hi trading krni chahiye.
Leverage is a major component Leverage basically allows you to trade positions far in excess of your initial trading capital which means you can potentially make vast profits from forex trading. Leverage works both ways. You can earn a lot of money or lose lot of money by using leverage.
Leverage, by its name, is used to increased our capital to trading, so we can do trading 10, 100, or even 1000 times than our initial capital. for an exampe, with leverage 1:100 then you can trade 10000 USD for just 100 USD. This is good since by this system we can increase our profit.Quote:
Originally Posted by forexpips
The benefits of leverage is its traders to providing a small capital to be able to trade forex trading. Although the capital employed is very small, but the potential benefits that may be obtained is as great as the use of funds. So that's where the benefits.
leverage is particularly useful for traders who have limited capital, so even though only $ 100 was able to trade as if we have the money $ 10,000 if we use the leverage of large as well. but keep in mind, leverage can also be the murderer of our account.
Leverage will give you benefit if you use proper leverage and proper lot size too in each condition of market.
You must have good leverage which is adjusted with your capital so you can trade well without risking too much
in forex market.
everytraders have different setting for this part because it depends to their needs in their trading but for this condition,they can set it up as their needs for high or lower and also depend to the money at their balance, and maybe if they have less capital then they can set the leverage with using 1 : 500 or 1 : 1000 and then they will get larger margin for their trading but if they get some losing and meet MC, so there is nothing left at their balance
Leverage is beneficial to both traders as well as the brokers, its a boon for traders as they can trade many times for then their capital and a gift for brokers too as more their clients trade more they earn in spread.