High leverage good or bad ?

I think for small traders, you should use 1:100 or 1:200, not more than that. For big traders, 1:400 to 1:600. High leverage will cut your balance. So always think about it before taking any decisions. Because leverage is one the most important thing for forex traders to consider while trading.

High leverage is risky if you don't trade with good money management and with a low capital. If you trade with money management it is not a problem. We need to use at least 1:100 leverage as our capital is low. But if you can manage it the lot size then it will not be a problem

Leverage only means that you are going to use a low amount of your equity in a particular trade then if you have use higher leverage then you will use your lower capital in trades thats it. And I think if traded with money management than leverage does not have any effect in trading.

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Originally Posted by nikhil_rrane

High leverage will always eat your balance. It should be used when you are confirm about the trend. I think it will be difficult to predict trend in forex. With high leverage you should not trade in the volatile period it will hit your margin call immediately. Now you can pick from this facts and decide whether to use or not.

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I have consent with you. Understanding market trend is the main thing to consider trading with high leverage or low leverage. If you can identify the market trend perfectly analyzing the fundamental analysis and technical analysis then you can take high leverage. Otherwise if market fall against you your capital may decrease rapidly for high leverage.

If you make good pips for your 1:200 leverage and if your strategy is good. Then i think you should stay with you system. But if your confident enough you make good profit to using high leverage then you can use high leverage but i think if you open lots of lots then some time if you make any mistake then you have problem. So be careful to use high leverage.

Yes high leverage is some time very bad for trader. Because trader open big lots emotionally using high leverage. So traders account is in risk. I think every trader should use risk management system.

High leverage in forex trading is never a good idea for us because of the higher risks that is involved in it. I control my leverage in my trades by knowing the right amount of money to invest in my forex trades.

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Originally Posted by vanigota

Yes high leverage is some time very bad for trader. Because trader open big lots emotionally using high leverage. So traders account is in risk. I think every trader should use risk management system.

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from my experience i dont think high leverage give high loss.so leverage is very usefull to max our profit. But we must wiselly with our money management before we make trade, avoid from greed feeling and doing over trade in forex.

i trade using leverage 1:400 in instaforex.. is it good for my balance? i trade 0.1 lot while my balance is 500. can some one explain to me, what will happen to thoose number.. the day before, i trade using leverage 1:100. and if i open trade 0.1 lot it takes my balance as a margin more than i use leverage 1:400..

her terhan ki leverage k benefits aur side effects bhi hotay hien ziaada leverage ka sab sey bera jo nuqsaan hey woh yeh hi hey k trader mien lalach peda ho jaaty hey or woh overtrade ker sekta hey lekin is ka faida yeh hey k ager high probability trade mil jaye to risk ley ker achay pesay benaaye ja sektay hien