Forex Zone - Forex Forum

Leverage is useful or dangerous?

Discussion started on General Forex Discussion

  • Hero Member
  • Posts: 524
  • Points: 0
  • Likes Received: 65
  • Reputation: +2/-0
It is right that the use of leverage that is not proportional to the capital owned only makes trading dissolve.
It is appropriate to take into account the leverage and capital. 
But if the money management is good it will be a counterweight.
#151 - October 26, 2020, 12:58:10 PM

  • Hero Member
  • Posts: 628
  • Points: 0
  • Likes Received: 59
  • Reputation: +1/-1
To anticipate unwanted things, we recommend that you have sufficient leverage of 1: 500 for the maximum. so won't be lustful to open a lot of trades.
#152 - October 27, 2020, 05:33:26 AM

  • Hero Member
  • Posts: 1028
  • Points: 2095
  • Likes Received: 296
  • Reputation: +6/-4
high leverage is very helpfull but unfortunately is also danger for traders which can make over trades and also over lots, so i suggest only use small leverage such as 1:200 or 1:300 it more safety.
#153 - October 27, 2020, 06:51:32 AM

  • Hero Member
  • Posts: 850
  • Points: 0
  • Likes Received: 97
  • Reputation: +2/-2
Leverage can be good and it can be bad. Here it is very important about controlling emotions so that you can use balanced transactions and not overlot.
#154 - November 09, 2020, 01:49:52 AM

  • Jr. Member
  • Posts: 58
  • Points: 909
  • Likes Received: 1
  • Reputation: +0/-0
The leverage always consider as an important financial tool which an investor should consider when choosing a broker. it always contains risk , so before trading with leverage we the traders have to know how to manage risk ,
#155 - November 09, 2020, 12:52:09 PM

  • Sr. Member
  • Posts: 266
  • Points: 0
  • Likes Received: 19
  • Reputation: +1/-0
What I know about using leverage is the money lent by a broker, the risk must increase.
With the multiplication of capital, small capital traders can trade in pairs that have large contracts.
#156 - November 09, 2020, 02:19:29 PM

  • Hero Member
  • Posts: 628
  • Points: 0
  • Likes Received: 59
  • Reputation: +1/-1
The dangers or not depending on how to use it, large leverage does not matter if money management is applied by making a maximum limit for the lot transactions used.
#157 - November 10, 2020, 01:45:55 AM

  • Jr. Member
  • Posts: 58
  • Points: 909
  • Likes Received: 1
  • Reputation: +0/-0
‘Maximum loss using leverage’ that’s not true practically. If anyone losses by using leverage it is completely with non-sense planning and zero risk management approach , nothing to do with leverage at all. so before trading with leverage we have to make sure real risk managing plan , because leverage always contains risk. 
#158 - November 10, 2020, 01:42:55 PM

  • Sr. Member
  • Posts: 436
  • Points: 0
  • Likes Received: 53
  • Reputation: +2/-0
Even the slightest mistake of using too much leverage will be difficult to control, you should always be obsessed with opening lots of trades.
for that adjust as best as possible to the conditions of the capital.
#159 - November 10, 2020, 01:49:11 PM

  • Hero Member
  • Posts: 1309
  • Points: 1095
  • Likes Received: 11
  • Reputation: +0/-7
dangerous or not it depends on how we use it, like a knife, it can be for something dangerous or not good, but it can also be for something useful, depending on how we use it. I think so is the leverage in trading
#160 - November 10, 2020, 10:40:29 PM

  • Hero Member
  • Posts: 701
  • Points: 5910
  • Likes Received: 39
  • Reputation: +1/-1
sometimes people prefer large leverage without knowing what the risk is behind all of it, even though if the capital used is relatively small then large leverage is very risky.
#161 - November 12, 2020, 01:37:09 AM

  • Sr. Member
  • Posts: 337
  • Points: 0
  • Likes Received: 25
  • Reputation: +1/-0
sometimes people prefer large leverage without knowing what the risk is behind all of it, even though if the capital used is relatively small then large leverage is very risky.
They do not study leverage as a whole, it should have been known from the start that the use of large leverage with small capital has a greater risk.
increasing the opening capacity of trading lots from leverage certainly increases the risk as well, but sometimes it is only seen from the increase in profit, that is a wrong thing.
#162 - November 17, 2020, 04:21:25 AM

  • Sr. Member
  • Posts: 296
  • Points: 0
  • Likes Received: 37
  • Reputation: +1/-0
Whatever capital you have, you should try not to use too much leverage, leverage definitely adds to the burden and risk, so a maximum leverage of 1: 300 is good and very sufficient.
#163 - November 17, 2020, 07:26:06 AM

  • Hero Member
  • Posts: 1309
  • Points: 1095
  • Likes Received: 11
  • Reputation: +0/-7

for me who only has a small capital, of course that leverage is very important, and for me this leverage is what distinguishes the trading business from other businesses, where those of us with small capital will be greatly helped by the existence of leverage
#164 - November 17, 2020, 11:14:45 PM

  • Sr. Member
  • Posts: 452
  • Points: 2273
  • Likes Received: 13
  • Reputation: +0/-0
it all depends on the trader choosing leverage and using the margin they have because leverage can be boomerang if it is used, but it can help if it is used well.
#165 - November 18, 2020, 06:03:58 AM

Members:

0 Members and 3 Guests are viewing this topic.