High leverage , High risk ?
Sep 10, 2020 at 07:09
TiffanyK posted:
The higher leverage is not the problem, the missing knowledge of the trader is a big problem! You can lose the same way with a low leverage account
I agree with this point. yes, for sure trading on higher leverages is a risky game if you are an amateur and just started exploring the trading world. In this case, high leverage will surely blow up your account because you are unaware of how the market responds to economic indicators and other technical aspects. Thus, initially one must work on low leverage once you have gained enough confidence, you can surely opt for higher leverage.
After all, who doesn't like bigger treats with less investment.
The more your practice, the more you learn.
Mitglied seit Jul 19, 2020
318 Posts
Sep 10, 2020 at 12:17
Yes, I agree with you. Demo account helps a trader to enrich his knowlege and also help him to practice all the tools and techniques of forex properly.
Sep 10, 2020 at 14:20
GeorgeBischof posted:
Yes, I agree with you. Demo account helps a trader to enrich his knowlege and also help him to practice all the tools and techniques of forex properly.
Yes demo account helps to test us our trading strategy. It is advisable that first we need to test our strategy on demo to find out winning percentage and risk reward ratio. Once we find it profitable we should move to live trading account.
Mitglied seit Mar 16, 2020
54 Posts
Sep 17, 2020 at 10:30
the higher leverage can magnify your profits and losses by the same degree. with higher leverage if you’re having big profits, you can have big losses as well therefore, the higher is the leverage, the higher risk you’re taking.
Sep 18, 2020 at 07:53
Admoni posted:
By and large traders who are particularly newcomers always fall a great loss due to non-sense planning and zero risk management plan, so before trading with high leverage it is more important to know how to manage risk.
There is a simple answer to it, higher the leverage lower is the margin requirement. But higher the leverage higher the risk.
The more your practice, the more you learn.
Mitglied seit Feb 22, 2011
4862 Posts
Sep 18, 2020 at 08:47
Low leverage = low profit?
Mitglied seit Sep 12, 2017
238 Posts
Sep 18, 2020 at 08:53
Leverage is a very risky tool which needs to be used effectively.
Sep 18, 2020 at 12:02
Forex trading is the most risky business because of it's high leverage facilities. It becomes more risky when novice traders open big lots. As a result they get margin call every now and then. You need to be smart to make consistent profit.
Mitglied seit Sep 07, 2020
72 Posts
Sep 19, 2020 at 07:57
High risk, but high profit
What the issue is that you would never get to know whether you will get the profit or blow up your account like that
What the issue is that you would never get to know whether you will get the profit or blow up your account like that
Mitglied seit Sep 12, 2017
238 Posts
Sep 23, 2020 at 02:46
No doubt it is high risk but it gives the high profits in returns as well if it goes in your favour. It is all in our mind. I personally believe in order to gain you need to take risks however I am not denying the fact that one should have enough knowledge before that.
Mitglied seit Jun 05, 2020
33 Posts
Sep 23, 2020 at 06:13
radioactive posted:True, high leverage can result in both high profits or big losses. Depends on how the trader uses it.
High risk, but high profit
What the issue is that you would never get to know whether you will get the profit or blow up your account like that
Mitglied seit Jul 20, 2020
232 Posts
Sep 23, 2020 at 20:12
Yes. If you don't have enough knowledge about the market, high leverage will be risky for you.
Mitglied seit Oct 07, 2020
104 Posts
Oct 12, 2020 at 05:39
It generally does not matters that if you have higher leverage then you will be having higher risks just look at in a positive manner when you will be in profits with maximum leverage then your profits will also be maximum whether you are in profits or losses you should have proper knowledge about the leverages and broker prior to trading as leverage is a two-edged sword it has both pros and cons to it.
Mitglied seit Oct 07, 2020
104 Posts
Oct 13, 2020 at 05:28
Stonesong posted:but the investor should keep in check all the aspects before putting his money it's his hard-earned bucks so first think about it
To talk correctly, you do not need to focus on the fact that there is a certain high risk, you need to focus on the fact that it is profitable enough and to some extent will be more profitable for you.
Dec 09, 2021 at 07:30
leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.
Mitglied seit Nov 23, 2021
34 Posts
Dec 15, 2021 at 13:23
Although leverage seems tempting to traders in terms of returns, it can be highly risky if traders don’t take proper risk management strategies. Before picking up leverage, traders should think of it in terms of loss, rather than profits. Since risk and reward walk together, traders shouldn’t place more than what can’t afford to lose. 0
Mitglied seit Apr 09, 2019
538 Posts
Dec 16, 2021 at 11:37
High leverage only equals high risk if you change your trading behaviour neagtively towards it. If you are trading with good risk management across individual and collective open trades then leverage can just ensure more of a buffer for you.
If you can't spot the liquidity then you are the liquidity.
Dec 17, 2021 at 19:29
Leverage is a very risky instrument for trading. I actually used to stay away from it for quite a decent period of time just because of the fear of losing more than I can afford. However, on practice, leverage risks can also be controlled. The calculation of the position size is more complicated but it is possible. Another questionis when newbies start using leverage in their trading immediately after coming to trading. This thing is really dangerous for their budgets and leverage can make them lose everything within a single trading session.
