High leverage lead to higher loss???

[angelrj]

In currency trading we try to profit from very small changes in currency pairs known as pips. One pip is the smallest change in currency value and is the change in value of second or fourth decimal value of a pair. When trading with the dollar (eg: GBP/USD) a 100 pip move from 1.9000 to 1.9100 means one cent increase in exchange rate. So in that case for getting a $100 profit requires investing $10,000. And in reality you are trading for much less pip differences so you need very high trading investments for any reasonable profit.

[Chow.ash]

i don't know about this.What brings higher losses is the lot size. For instance, if you are using a lot size of 1.00 and the market goes against you by 1 pip, you will lose $10 which is a lot of money and can wipe your account especially if you have a small balance. So high lot size can lead to higher losses.

[hakim666]

As I experienced, using high leverage is good for preventing Margin Call from our small amount of capital. With high leverages, my account could hold account more than lower leverages (with same lot size). But it's right if leverage can bring us safer but it could be dangerous if we are too careless to underestimate condition and made too much order positions.

[creativeifx]

Yes, it's true. high leverage lead to higher loss on our stock. But, also high leverage is lead to higher profit. So, it's depend on your strategy. if you are a expert trade, so you can fix it for your 1.1000 leverage up to 1.2000 it's doesn't matter.

[himfx]

I am also agree with your opinion that using high leverage you can use high trade lot and for this you will take much risk also make more mistake so i think high leverage lead the higher loss. i think we need use our knowledge and experience before chose leverage.

[enter]

upper leverage is too unsafe guys but can u release writer profit also if u get favorable trades but u can retrogress also your all money cause it too dangerous my content is that new comers should trade with low investing cause Forex is a week long statue job

just the trader do not make the good money management that make them being unsafe on the forex only, but if tthey are still can make the good money management on the forex they will also being safe inside this business too just depending on them

[migntv]

I think leverage is not main factor to higer loss.greaddy is the main factor to higher loss.becaus we can use this leverage 1:1000 and my blance is 25$ so if we do not big order so we will not big amount loss. if we order small price so we wilol low loss.

[lis]

Forex is a very tricky and risky industry any one who does not abide to the rules of forex then is prone to loose each and every dime he or she may have invested and there is no other thing that can prevent that than you,by trading with the right leverage.

[imran1]

A higher leverage means basically this FOR EXAMPLE:

EUR/USD AT 200:1 (REQUIREMENTS PER MARGIN REQUIREMENTS TO STAY AT OR ABOVE) YOU NEED ABOUT $50.00
EUR/USD AT 100:1 (REQUIREMENTS PER MARGIN REQUIREMENTS TO STAY AT OR ABOVE) YOU NEED ABOUT $100.00
EUR/USD AT 50:1 (REQUIREMENTS PER MARGIN REQUIREMENTS TO STAY AT OR ABOVE) YOU NEED ABOUT $200.00

(give or take a some bucks just using a basic example)

So basically all higher leverage does is takes money away/or gives more from the ability to trade.

You can lose alot more money per lot with a 200:1 margin leverage, versus a 50:1 margin leverage.

But you are not able to make as much money with a 50:1 margin leverage, versus a 200:1 margin leverage.

The profit ratio truly depends on your style of trading and consistency.

I personally prefer the 200:1 or great leverage (I.E. 300:1, 400:1, 500:1) because of the ability to use massive lot size for the ability to make 10% of my base margin in only 10 pips profit or so with the lot size I approximately trade with. Versus the requirement of me to trade now (being in the USA requirements) of 200:1 where I may, and I mean may get lucky and make 1% from making 10 pips from the lot-size.

Do you see what I am saying?

[adnan10076]

leverage mtlb hy k level me rkna..i mean agr hum ziada leverage ko use krty hy to es ka ye mtlb hy k jtne ziada earng k chances hongy utne ziada risk b hoti hy..oor leverage ka sahe use na kea jay toh buht loss hota hy...