Printable View
with great leverage we have a greater margin. But beside that, the leverage can be a boomerang if we are not prudent in using it. for example, we open a position with a large margin leverage is still plenty left, so we continue to open up to a lot. This is very dangerous if the price does not correspond to our analysis. We're actually going faster loss even MC, because leverage has no effect on profit or loss
high leverage is a double edge sword. High leverage does not bring higher losses but it can make you to handle high volume of currency. 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. good job...........
As far as i experienced, the profit and loss of oneself completely depends on his/her experience. Yes, high leverage is a fact to be noticed, but then again, if one can use hi leverage to his advantage, he is sure to profit. And profit always depends on the business tactics. So, if leverage is taken as a tactic and can be played well, there is no chance to attain loss. High leverage does not bring higher losses but it can make you to handle high volume of currency. 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. That is why greed is dangerous.
It is a type of independence to business on your own wish. I think everyone should use great create use of. Leverage is dangerous not but not at all cause if you are knowledgeable and a very excellent qualified investor then why will you create reduction instead of profit? If you will sustain control than this create use of works for you as a powerful protect. So, don't take this adversely create you a weakness powerful it's all up to you.
It is too much or too large, they are the biggest problem for us, I do not think high leverage is not Harmful if you have a good money management rules. if you use the leverage that big if you only use a small lot size then leverage will not mean anything. Things that lead to higher loss is our behavior in the open position. High leverage has simple advantges and disadvantages as well in forex trading. It serves an advantage when we understand it and it also serves as a disadvantage when we do not have a good knowledge and understanding of it.
I agree with you, there is no link between the amount of leverage with the magnitude of loss. The greater the leverage, the opportunity to open a lot bigger, and the amount of loss or profit is entirely determined by luck and skill of the trader's own and Use a high leverage like you are using the double edged swords friend . High leverage can let us get the high risky but it can help us earn a lot of money very fast . The choice is depending on every trader .
Yes friend you are right that high leverage may lead high loss for you. Because by using high leverage you can open a position with using big lot size and this position may give you high profit if your trade goes your wanted direction on other hand you must face big loss for using high leverage, thanks.
we can use high leverage in trade but we also need to perform risk management in trade.we can make profit from our trade huge if we use high leverage.But if we have wrong analyse then we have to lose huge from our trade. high leverage did not give you higher losses in this business. I think high leverage can protect your balance from margin call. If you are using low leverage with your little capital then you can loss your balance too quickly.
High leverage does not bring higher losses but it can make you to handle high volume of currency. 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. I mostly use some big levarge when my account is at some last steps then i will take some Big risks in order to save my account, or else i use normal leverage for my trading.
High leverage does not bring higher losses but it can make you to handle high volume of currency. 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. Yes i think newbies should not take high leverages because they are the ones who cant able to control their emotions and will surely open big lot size and lose everything. But if they control themself then high leverages is good.