High leverage good or bad ?

[ashwini]

I trade on 1:500 ..

But take only 10% of capital for long trade .. Mostly 100 pips

and 100% of capital for short trade .. 5-15 pips

[yogesh]

Very high leverage makes your trade like betting e.g. if you use 1:500 leverage, your trade will be closed at less than .2% loss which is quite possible in volatile forex market even though trend is not changed and after stopping your account prices may soon return to higher (profitable) level, so higher leverage make your trade more risky.

[jadhav]

High leverage mary khayal main trader kay liye aik facility hay kay wo chotee investment say bhi froex filed main trade kar sakta hay. lakin is facility ko theek tareeqay say use karna chahiye aur big lots trade karny say avoid karna chahiye.

[jadhav]

I think a trader need to concentrate more on the Money Management and risk management instead of the leverage. If you are using 1:50 leverage but ignoring your risk level and MM you will be loosing your account. SO high leverage or low leverage is not the matter, the matter is MM.

[newentry]

You are doing very right. It is my practical experience that higher leverage is not bad at all but the main problem is a big lot size. I have got the MC many times just because of this big lot size in past and now I am using the highest leverage of 1:1000 and restricted myself from opening a big lot size.

you are right, leverage is built for to get an ideal margin for the traders and the trader can set it as much as they need and if they want to get larger margin they can set the leverage with the highest and set the lots with the smallest...it is safe trade with small lots but need longer time to get much profit

[mirror]

Every trader need to concentrate more on the Money Management rather than on leverage and risk management . If you are using 1:1000 leverage but ignoring your risk level and MM you will be loosing your account. SO high leverage or low leverage is not the matter, the matter is a good money management

[forexman]

i think high leverage is good if you open small lot sizes but for big lots you will lose money easily if the price goes down suddenly.i think as per me for 0.01 lot size it is good but for other lotsize it is risky

[strong]

I trade with 1:1000 leverage, yet I decide lot size on the basis of 1:100 because then i am able to safeguard mywself from trading with huge lots and risking more funds for stupid trades

You are doing very right. It is my practical experience that higher leverage is not bad at all but the main problem is a big lot size. I have got the MC many times just because of this big lot size in past and now I am using the highest leverage of 1:1000 and restricted myself from opening a big lot size.

[aniket]

I trade with 1:1000 leverage, yet I decide lot size on the basis of 1:100 because then i am able to safeguard mywself from trading with huge lots and risking more funds for stupid trades

[rakesh]

i dont know why you people say high leverage will eat your balance,its dangerous ,its not advisable for newbies etc.Please people understand that high leverage is completely harmless unless you misuse it.If you open a big lot with small capital then its harmful.So its traders who make it harmful.Or else its harmful and its beneficial as it gives more free margin.