What are Leverage benefits in forex?

[taufiqbd]

Leverage is the ratio of equity and debt mixer. 1:100 leverage means that if you have $1 capital then you can borrow $100 from broker. I think in forex trading 1:100 leverage is good. If take more debt then you can face more problem when market go against you.

[Rizwan]

Leverage is the factor which makes forex exciting. If you have $100 then you can command a $100000 using a leverage of 1:1000. But we should be careful in using these leverage because it can benefit as well as harm us. although high leverage can bring high profits it can equally bring big losses. So it is advisable especially for the forex aspirants who have low balance / equity to use low leverages.

Leverage means that say you have 1 dollar and are using 1:100 leverage so you can make trade with 100 dollars. Leverage makes possible for small traders to open and close big orders.

Mostly big banks don't favour the use of leverage as the risks are very high. Now what is the risk?

See when you are having 100 dollars and using a leverage of 1:100 then effectively you are trading with 100x100 = 10,000 dollars worth of trade in the market. And say your order is not successful and you make loss so here your complete capital can be wiped out in a very short span of time even before you can realize.

[osakwe]

when am filling out a form for a trading account, i do normally go for a higher leaverage because it does afford me the opportunity to place higher deals and to make high profits too.

[ayakcalysta]

if you want to know the trading then learn from and within the meaning of the term in the trading platform to really understand after you open a demo account to learn on-line trading practices coupled with the knowledge learned earlier so it will know the usefulness of each sense

indeed sir, I strongly disagree with your opinion that if we want to do forex business then our first practice with a demo account. after we have enough experience and a good control strategy in the forex business then we run it using a real account.

[venus]

using leverage is very good in forex trading, it mean with little money you can get a very big lot size , the broker have some many type of leverage they offer the customer

What do you mean with little money, you can get big lot size? I think it will be useless to use high lot size if you couldn't trade well.
The benefit is not big lot size but it's possible to hold more pips than lower leverage. Leverage is facility from brokers which allowed
traders to enter into forex market although we had only small amount of capital.

[eddy]

if you want to know the trading then learn from and within the meaning of the term in the trading platform to really understand after you open a demo account to learn on-line trading practices coupled with the knowledge learned earlier so it will know the usefulness of each sense

[purohit]

The biggest advantage of leverage is that it enhances the trading abilities of any trader and specially the traders who have less investments or less capital and good skills can use the leverage to make more profits.

[sazzad]

Leverage is the amount of dollar which is given by the broker for trading in this market, if you have 50 dollar initial deposit then you can select 1:500 leverage here if you invest 1 dollar then broker will invest more dollar for you according to your leverage.

[abdullahmuslim]

i agree with you my friend, leverage is an opportunity to make huge profit by using low capital. This is forex advantages compared to other business

I think it is helping us to leverage and also an opportunity for traders to acquire and manage our capital with little or low .. we can maximize our low capital to benefit very much

[chirag111222]

the good leverage in the forex is 1;200 because here we can not take some big risks or we can not take some less risks. it is most use ful when we do the tradings at the time of news.

dude 1:100 isonly best apppropriate opion low risk nd better money management so go with it unless u r successful and experienced fx trader then u cn o on with ur choice of leverage