High leverage lead to higher loss???

[sanjeev]

I think leverage risks to be determined by the validity of the trading method.. some people use good money management rules along with the high leverage and have good success...

[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.

[realfun07]

I mostly use some big levarge when my account is at some last steps then i will take some Big risks in order to save my account, or else i use normal leverage for my trading.

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.

[imbest]

I will agree with realfun totally that it is up to us to swing this tool in our favor or against ourselves. Actually with higher leverage we have more margin to open more positions so the proper MM will be required and a good trader should be able to do it.

[realfun07]

Leverage is extra money given by brokers to its clients to enhance the trading capacity of its clients.Also if leverage is used cautiously it can lead to higher gains.So it does not means that higher leverage will lead to higher loss.Higher leverage can lead to higher profits too.It is upto the trader to decide how to use the leverage to get maximum benefit.

[gosians]

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?

High leverage is not harmful at all. Kuch logon ka khyal hy k high leverage sy loss b zyada hota hy tu ye bilkul ghalat hy, leverage sirf hamen ic qabil bnata hy k hum big lot size ko handle kr skaen aur big lot size hmary lye high loss la skti hy. Mery khyal main high leverage use krny main koi problem nhi but big lot size mat use kren agr apk pas capital km hy tu.

[Trade king]

Yes i think newbies should not take high leverages because they are the ones who cant able to control their emotions and will surely open big lot size and lose everything. But if they control themself then high leverages is good.

Anyhow, use of high leverage is not favorable for newbies because they are just beginners and have insufficient knowledge about forex. So it is very dangerous step for newbies to use high leverage in their trades. Most brokers recommend or advise newbies not to use high leverage in their trades because if there is a single mistake then it might lead to occur heavy loss and hence newbies might go bankrupt. So, high leverage is only suitable for expert traders because they have enough skills to use it, handle it or control it.

[Ronak]

So, leverage should be used carefully. And also we have to limit yourself if we use high leverage. Forex always makes you sad if you not able to handle forex trading. Try to learn some thing daily.

sahii hai..leverage ka sahi use naa karne par humein nuksaan ho sakta hai...aur leverage se jyada lot size jyada effect karti hai profitibilaty ko kyun ki jo hm bina plaaning aur strategy se khelenge to humein bhaari nuksaan ho sakta hai..

[BojanHajdinjak]

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?

Right! High Leverale often allow us more room inside balance before margin call.
Some strategies needs more room inside balance.
We can adjust risk with lotsizes if broker have possibility of minilots, microlots and nanolots.
But there is difference between no leverage Fx (bank exchange) and Fx with leverage.
Here coul be truth that leverage (or higher leverage) coul be reason for loss. But it also
could be reason for big profit with small capital

[venkiaries61]

yeah of course, high leverage leads to bigger loss, Due to these leverage factor Forex is exciting because we can get a big profit with a small capital. On the other hand it can wipe our balance more easily if our positions went wrong. So high leverage leads to higher profits or higher loss.

So, leverage should be used carefully. And also we have to limit yourself if we use high leverage. Forex always makes you sad if you not able to handle forex trading. Try to learn some thing daily.