High leverage good or bad ?

A trader needs to understand that it is NOT trading with the high leverage that leads to margin calls but it is trading with high lot sizes that leads to more losses and also absence of money management skills .

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Originally Posted by kiran

A trader needs to understand that it is NOT trading with the high leverage that leads to margin calls but it is trading with high lot sizes that leads to more losses and also absence of money management skills .

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i dont anticipate top leverages can advance top lose can be because of top lot. Actually i anticipate advantage is not abundant important rather than lots of size.

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Originally Posted by roopesh11

As i think that the high leverage is very risky in the forex trading, because if we want to survive more in this world then we should use less leverage or low leverage like - 1:10 by using this much of leverage we will safe every time in the trading.

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Higher leverage means you are trading a lot with less money that in case your trade went rong than you bear a big loss in matter of few pips. Many traders use 1:200 becasue this is best for scalping as well as for day trading and swing trading.

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Originally Posted by hitcola

high leverage is always good, and that is the reason why many brokers provide a high leverage to their clients. many clients request the high leverage to be able to trade high lot size with low capital

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in my opinion, the high leverage will be very good for traders with the type of scalping, because they will be able to use substantial leverage in their trade, because they will fit with the strategy of risk.

1: 200 leverage is okay for a newbie and it also depends on your account balance. A trader shouldn't use a very high leverage because it both has its advantage and disadvantage. The advantage is that you can make higher profit while the disadvantage is that you can get margin call easily.

High leverage is not good all time. High leverage can bring good money but it can bring a great loss.
I use 1:10 leverage.

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Originally Posted by Jazpa

I agree with you nikhil_rrane. High leverage will always lead us to early margin call if the trade is going down for us. High leverage helps us to make quick money too but if we want to survive in the market for long period, we need to start trading with small leverage first. It will be best to hang on to the market as long as possible without getting margin call soon.

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leverage is not the problem at this business and the real problem here is the trader itself, if they can not trade with very well and i guess they will always face some loses although they have big capital, use the leverage with many settings or else...so leverage, lots size and else about forex is not the causes of loses, but the trader itself

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Originally Posted by Hiron

High leverage is not good all time. High leverage can bring good money but it can bring a great loss.
I use 1:10 leverage.

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I think you made mistakes here. With higher leverage, it won't bring bigger loss if you had good money management especially
if you use proper lot size. Using low leverage like 1:10 leverage will need high amount of capital and I don't think if all traders
especially retail traders, could use it. Normally, beginners will use 1:1000 or 1:500 as their leverage.

thanks for your comment. what should be the leverage ratio for a new trader. As I am a new in Forex trade from what range of leverage ratio I can start my trade. Your advise in this regards would highly appreciated.

i prefer to use higher leverage than low leverage because I only had small amount of capital so it is too risky if I use low leverage. It;s important to use proper leverage and lot size in each transaction so high leverage could be good or bad doesn;t matter but it's depending on condition of our account balance.