High leverage lead to higher loss???

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Originally Posted by loserbynature

High leverage is not so bad but the bad thing is that it allows us to open big lot size positions and big lot size positions are very dangerous in forex trading. Instead high leverage is so beneficial that it provides us the opportunity to earn more with less investment .

If we control our greed and avoid opening big lot size positions then we can take the advantage of high leverage.

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Also you need to understand that using high leverage does not lead to more risk and low leverage means less risk.It is not the case as you can still loose your money if you use less leverage and still your entire account can be wiped out in a volatile market.What is important is risk management and money management where you need to cut down your losses by using Stop Loss on all the trades.

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Originally Posted by Victoryindia

High leverages se hum big lot size open kar sakte hai aur uske wajah se hume margin call bhi lag sakta hain. To newbies to low leverages used kareaga to acha raheaga.

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sahi baat hai. agree 100% with you. newbies shouldnt start trading with high leverage because the chances of losing is exceptionally high

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.

We have to use the leverage carefully as it could lead to the huge loss in the account balance. We have to make sure that we are able to do the trading for a long time and thus along with the use of the high leverage it actually becomes mandatory to make the use of the stop loss on all the orders.

High leverage is taken for making more money. It is good when we will know the trend and when we assure about the fundamental analysis. I think high leverage should not be used to small account balance as it will rapidly empty the balance.

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Originally Posted by nikhil_rrane

High leverage is taken for making more money. It is good when we will know the trend and when we assure about the fundamental analysis. I think high leverage should not be used to small account balance as it will rapidly empty the balance.

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Your are right when we know the trend and we also know about the current news which is benefited for our pair then we must change over to high leverage and this act will give good profit but not all the time. It is just for timing being.

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Originally Posted by sunil

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.

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yeah, most of people used high leverage for their greediness and you people know very well that greed emotion over forex market is always effect your account and leads to big losses.
So play safe with low leverages and free from any big losses.

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.

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Originally Posted by speedy

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

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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.

Another reason for loss is using high leverage. By offering high leverage, the market maker encourages traders to trade extremely large positions. This increases the trading volume cleared by the market maker and increases his profits, but increases the risk that the trader will receive a margin call. While professional currency dealers (banks, hedge funds) seldom use more than 10:1 leverage, retail clients may be offered leverage between 50:1 and 200:1