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yeah i am agree with you about that high leverage might not lead to higher loss Because how much loss you may incur depends mainly on the lot size. As lot size varies positively with the leverage so the liability of incurring loss also fall partly on leverage ratio.Quote:
Originally Posted by Anytime
Leverage allows traders an opportunity to enhance returns. But the influence and leverage is a double-edged risk increases the negative side as far as adding to the potential gains. In the Forex market allows traders to their accounts to double as much as 400:1, which can lead to huge commercial gain in some cases - and lead to losses in the account crippled in other areas.
Leverage on one hand is most attractive feature of forex market as it help us make many times more returns than the actual capital but on other hand it brings in more risk, so we should avoid very high leverage and should go to use leverage that you feel shall keep your account safe.
ha risk jarur he par ek accha trader always high leverage use karte he. uske loss ka chance kam or profit ka chance jyada rehta he. उच्च का लाभ उठाने उच्च नुकसान नहीं ला करता है, लेकिन यह आप मुद्रा की उच्च मात्रा को संभालने के लिए कर सकते हैं. क्या उच्च नुकसान लाता बहुत आकार है.
Im also agree with your conception that higher leverage lead higher loss. I presume that higher leverage can also lead higher profit if trader can use higher leverage in big amount. Happy trading :)
yes i agree with you.high leverage will lead you to handle high volume pf currency.loss only comes to you because of you unconsciousness about trading in forex .so i agree with you.
High leverage can really make you lose a lot and make you understand that forex is not all about gainning but losing also when you understand that then you are able to make money in forex, just trading can give you some good money.
high leverage leads to higher loss and we should have enough balance if we decide to go to this leverage than we should have enough bank account.Quote:
Originally Posted by mary7
I see two reasons behind higher leverage leading to bigger losses first due to higher leverage we trade big quantity that simply means bigger loss trade going wrong, second trade is able to bear lessor volatility and we shall run short of margin faster and our trade may get closed by broker due to insufficient margin while with lower leverage we shall be at liberty to wait for our price to return.
When we are trade in forex we should select proper leverage for our trade..if you want to trade with a standard lot you tale a high leverage but my advise is it is very risky ..always as a owner of a low capital its better to trade with a smaller lot sizes