Well said, wo traders jo money magment ko follow karty hain un kay liye high leverage benefecial rehta hay. High leverge traders kay liye bura naheen hay balkay high volume bura hay.
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Well said, wo traders jo money magment ko follow karty hain un kay liye high leverage benefecial rehta hay. High leverge traders kay liye bura naheen hay balkay high volume bura hay.
I don't think that higher leverage leads to higher loss but in fact higher leverage give us the facility to open a big lot size and big lot size leads to higher loss. hence if we use a higher leverage but avoid big lot size then we can avoid loss.
Hence if you can avoid big lot size then higher leverage is not bad.
hhmm.,, I disagree with your words. leverange not associated with the lot size. leverange in my opinion is only concerned with margins that we use. is there anything that could explain it further, I also still do not understand.
we set leverage as we need and it depends to our requirement, so ...there is no absolute conclusion for this case, we can not say high leverage is risk or low leverage is safe...i ever set my leverage with the high ones when i have a little funds in my balance and now i set it with a lower ones to avoid from big losing
use of high leverage is not in accordance with the capital is very dangerous. few financial mistakes we will get the MC problem, the use of leverage to be adjusted to the capital. why? because the leverage is financial management. management we are in a position to open transaction in forex trading
Even though using higher leverage we can have big trade size with smaller capital but it is going to be risky, as we shall always have fear to get our account stopped due to lower margin. Those scalpers or very small term trader may think of using higher leverage but those want to keep positions open for few days or long term should go with lowest leverage possiible.
I agree with you. Actually high leverage may lead us to loss but most of time high leverage just lead us to quick margin calls. That is why we can not blame high leverage for any kind of loss. Leverage is just an option for traders to manage high values in small funds.
Every aspect has merit and demerit. High leverage helps us to make good money while trading but it can lead to high loss too. It will depend upon our trade whether we are losing or winning in high. If we place good trade then definitely we will be able to earn good profits with the high leverage. But failing to do that will surely lead to huge loss too.
High leverage does not actually bring
higher losses but it can make you
trade high volume of
currency. What actually brings about higher
losses is the lot size. Just imagine
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. Higher lot
size leads to higher losses.
high leverage is both good and bad, with high leverage we are able to get big lot sizes but if we go in loss then we loose lot of money, but i think that new ppl should go for small leverage and someone who is good at forex can use high leverage.