High leverage lead to higher loss???

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Originally Posted by jamalkhan

high leverage may lead you to bankruptcy too.

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High leverage is the open gates for flow of funds out of our account, it increase the greediness in the trader and make him to take more risk than his money management plan which leads to some loss.

When trader command by themselves then when trader utilize large influence then it isn't that awful. But when trader will not command by themselves then trader should utilize little influence in order that trader can easily control their own account properly avoiding threat.

no friends,

with high leverage we can trade with low investment, this means we only use a small fund for transactions because with high leverage brokers provide a wide margin, so it is easier for small traders with limited funds for investment

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Originally Posted by kiran

Higher leverage can give you high profit but it is a history that traders who uses high leverage had lost their money. So it is a best facility we have available but we have to use this facility whenever you are confirm about movement without any problem.

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we must apply the discipline of the trading process that we run is actually more to the way we understand all the procedures that we run as good as possible in order to be synchronized with the things that really can make you understand the trading process itself for the better

higher leverage is good for those who use it properly and we can say that higher leverage is double-edged sword could hurt the owner and can also protect the owner so don't opn lot blindly if you don't want the margin call to visit your account !

I think that the increase in this ratio depends on the size of the capital in the account and must be subject by someone experienced and novice Hany not know the ratio appropriate to the size of their account

I think high leverage may be the open gates for stream of funds away from our account, it maximize the greediness within the trader and lead him to to take much more risk than his money management strategy which leads to some loss.

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Originally Posted by Anytime

Many people think that high leverages lead to high loss, but i think it is not true as big lot size is lead to high loss.

What you think about this?

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off course your statement is true because some time when we choose the high leverage then there is the chance to loss all capital if we do not set the stop loss but if our trade volume is low according to our capital then i think we will not suffer loss

A study shows that ,When the sales drop to $50,000, the high leverage option declines to its break-even point while the low leverage option minimizes the loss. Now notice what happens to the firm's sales increase to $150,000.
When a firm's sales increase, the cost structure option with the higher degree of leverage is able to maximize the firm's profits.

I think that high leverage is the part of business strategy-
High leverage lead to high capital risk.
It is also true that high leverage can also contain more profit .
If there is no leverage there is no attractive business seen.
If leverage is not accurate it doesn't contain actual profit .
So leverage should be actual .
If it is not it can be pain full too.
In the Forex trading if it is not so it can be contain high loss.