High Leverage
Jul 13, 2019 at 11:18
I think retail traders with small capital tend to use high leverage.
For example a pro trader inside a bank or a firm managing millions of dollars would be happy with around 20% annual return and their risk management is totally different so they dont use high leverage or probably they dont use leverage at all.
On the other hand most of us retail traders, we play around with our 1k accounts and for us earning 20%=$200 a year, is not a very good return.
I think as the trading capital grows, it decreases the leverage over time.
Like... i dont really care if i lose $100 on a trade on my 1k account, which is 10%, bcoz i can make it back the next day. But imagine the pain losing 10% on a trade on your 1 million dollar account, which would be losing a hundred thousand dollars on that day. Now that would hurt :)
So i guess reducing leverage comes naturally as your account grows.
For example a pro trader inside a bank or a firm managing millions of dollars would be happy with around 20% annual return and their risk management is totally different so they dont use high leverage or probably they dont use leverage at all.
On the other hand most of us retail traders, we play around with our 1k accounts and for us earning 20%=$200 a year, is not a very good return.
I think as the trading capital grows, it decreases the leverage over time.
Like... i dont really care if i lose $100 on a trade on my 1k account, which is 10%, bcoz i can make it back the next day. But imagine the pain losing 10% on a trade on your 1 million dollar account, which would be losing a hundred thousand dollars on that day. Now that would hurt :)
So i guess reducing leverage comes naturally as your account grows.
Jul 14, 2019 at 09:18
Gabor33 posted:
I think retail traders with small capital tend to use high leverage.
For example a pro trader inside a bank or a firm managing millions of dollars would be happy with around 20% annual return and their risk management is totally different so they dont use high leverage or probably they dont use leverage at all.
On the other hand most of us retail traders, we play around with our 1k accounts and for us earning 20%=$200 a year, is not a very good return.
I think as the trading capital grows, it decreases the leverage over time.
Like... i dont really care if i lose $100 on a trade on my 1k account, which is 10%, bcoz i can make it back the next day. But imagine the pain losing 10% on a trade on your 1 million dollar account, which would be losing a hundred thousand dollars on that day. Now that would hurt :)
So i guess reducing leverage comes naturally as your account grows.
I have also noticed this point; whatever, retail traders should follow the rules of money management as well as the risk management so carefully!
Mitglied seit Aug 27, 2017
994 Posts
Sep 01, 2019 at 15:21
Roberto21 posted:
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.
Small trading leverage is the best choice; besides, without following the money management rules, success is impossible!
keeping patience.......
Mitglied seit Feb 22, 2011
4862 Posts
Sep 19, 2019 at 14:24
Roberto21 posted:Leverage is not any issue.
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.
It is simply tool which allows you to place bigger trades with smaller deposit.
Bigger trades bring bigger profits or losses.
Depending on your trading.
Sep 21, 2019 at 13:51
togr posted:Roberto21 posted:Leverage is not any issue.
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.
It is simply tool which allows you to place bigger trades with smaller deposit.
Bigger trades bring bigger profits or losses.
Depending on your trading.
You are right; even it’s a complicated issue at all! But I guess; maybe he is changing the leverage features for multiple times!
Mitglied seit Sep 23, 2019
10 Posts
Sep 23, 2019 at 11:09
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Mitglied seit Feb 22, 2011
4862 Posts
Sep 23, 2019 at 11:10
blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Mitglied seit Aug 27, 2017
994 Posts
Sep 23, 2019 at 14:24
togr posted:blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!
keeping patience.......
Mitglied seit Sep 25, 2019
10 Posts
Sep 25, 2019 at 10:02
Adribaasmet posted:togr posted:blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!
High leverage is better for trader with small account because they can trade with small Lot size.
Mitglied seit Aug 27, 2017
994 Posts
Sep 25, 2019 at 11:09
TheGreatRecycler posted:Adribaasmet posted:togr posted:blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!
High leverage is better for trader with small account because they can trade with small Lot size.
I don’t think so; because I see, high leverage is more dangerous to the small account holders!
keeping patience.......
Mitglied seit Feb 22, 2011
4862 Posts
Sep 30, 2019 at 20:45
Adribaasmet posted:togr posted:blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!
And regulated brokers offers unrealistically low leverage :)
Oct 06, 2019 at 01:23
ChristianBeach posted:
Sadly high leverage trading is not possible in US and EU any more. This is real problem for many trader and may end up killing the retail Forex market in these geographies
High leverage trading is still possible worldwide because there are some brokers that offer high leverage and accept member registrations from US, EU and other international members.
Oct 06, 2019 at 01:33
TheGreatRecycler posted:Adribaasmet posted:togr posted:blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!
High leverage is better for trader with small account because they can trade with small Lot size.
High leverage is more profitable for a trader with a small account balance but with a profitable trading strategy
Mitglied seit Feb 22, 2011
4862 Posts
Oct 07, 2019 at 12:08
aa33030 posted:TheGreatRecycler posted:Adribaasmet posted:togr posted:blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!
High leverage is better for trader with small account because they can trade with small Lot size.
High leverage is more profitable for a trader with a small account balance but with a profitable trading strategy
Well profitable trading strategy is a must. Have nothing to do with leverage though :)
Oct 09, 2019 at 18:54
togr posted:aa33030 posted:TheGreatRecycler posted:Adribaasmet posted:togr posted:blackbridge posted:
Without leverage there would be no FX trading. No one can make money with 1:1 leverage. Need at least 1:100 IMHO
Well without leverage FX would remain domain of the rich
Even I was; but nowadays so many brokers offering unrealistic leverage; strange!! This is why, new traders lose their balance so easily!
High leverage is better for trader with small account because they can trade with small Lot size.
High leverage is more profitable for a trader with a small account balance but with a profitable trading strategy
Well profitable trading strategy is a must. Have nothing to do with leverage though :)
Trading strategy is a different issue; no connection with the money management!
Oct 10, 2019 at 15:13
nick3232 posted:
higher leverage allows to stomach larger floating
I agree with this. A small account combined with high leverage is a deadly combination. But alas, it is the only option in some cases. However, there really is no room for mistakes.
Mitglied seit Jul 20, 2020
232 Posts
Sep 04, 2020 at 09:36
Leverage is good for making money. But as a new trader you can not take risk by using high leverage. High leverage means high risks
