kiranchandra Posted October 17, 2013 Share Posted October 17, 2013 Can someone clearly explain what is mean by leverage in trading , i noticed to see this word being used lots of times in this forum but dint understand yet. Give me some definition. Quote Link to comment Share on other sites More sharing options...
gaban Posted October 21, 2013 Share Posted October 21, 2013 leverage is margin collateral. If we invest 1 million if leverage is 1:100 then our capital will be 100 times more than we deposited. Therefore, we must be careful in choosing the leverage that we will use. Because of the greater leverage that we select, the greater the risk that we face. Quote Link to comment Share on other sites More sharing options...
standart Posted October 21, 2013 Share Posted October 21, 2013 leverage enabling traders to trade with small capital which usually require to $100 per standard lot value. leverage enabling traders can use micro lot which have $1 value. so, traders can trade $1 equal to trade with $100. that if I am not wrong in calculation. Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 29, 2013 Share Posted October 29, 2013 leverage enabling traders to trade with small capital which usually require to $100 per standard lot value. leverage enabling traders can use micro lot which have $1 value. so, traders can trade $1 equal to trade with $100. that if I am not wrong in calculation. in forex trading we know that this is a good opportunity to use the amount of leverage in the trade because after this trade had to use especially with the leverage we use small capital then we must use the leverage in this trade Quote Link to comment Share on other sites More sharing options...
standart Posted October 30, 2013 Share Posted October 30, 2013 when traders have small capital in trading account, better they are use 1:100 standard leverage ratio. which enabling them to trade with smallest lot size. traders can choose to use high leverage but it won't make them survive long when they are have small capital. Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 30, 2013 Share Posted October 30, 2013 when traders have small capital in trading account, better they are use 1:100 standard leverage ratio. which enabling them to trade with smallest lot size. traders can choose to use high leverage but it won't make them survive long when they are have small capital. when we have a little capital in the trade I am sure we will need a better leverage in trade because without the leverage we need such a large capital in forex trading and I may not be able to participate in forex trading if such Quote Link to comment Share on other sites More sharing options...
uncle gober Posted October 30, 2013 Share Posted October 30, 2013 Leverage is the ratio of the amount used in a transaction to the required security deposit. We should be carefull when choosing leverage to trade in forex. We should understand that if we use higher leverage, the risk also will be higher. Quote Link to comment Share on other sites More sharing options...
gaban Posted November 5, 2013 Share Posted November 5, 2013 Leverage is the ratio of the amount used in a transaction to the required security deposit. We should be carefull when choosing leverage to trade in forex. We should understand that if we use higher leverage, the risk also will be higher. yes, I agree with you, we should be careful in choosing leverage. think carefully before choosing leverage. Laverage large could be detrimental for our trading. Moreover, if we do not have good money management. With higher leverage will make us become greedy trader. As a result, our accounts will not last long. Quote Link to comment Share on other sites More sharing options...
Decub Posted January 8, 2014 Share Posted January 8, 2014 I see leverage system as the main reason poor people are in Forex. With leverage, a trader can trade with small amount and still make reasonable profits. It is like, if you are trading with 10 using a leverage of 1:100, it makes it look as if you are trading with 100*10 which is $1000. Quote Link to comment Share on other sites More sharing options...
standart Posted January 27, 2014 Share Posted January 27, 2014 leverage is s system which increase the chance to get high profit though traders have small capital. higher the ratio, mean minimum lot size will be increase very high. I am personally prefer to use standard 1:100 leverage ratio. it safer and doesn't cost high margin if we choose to trade with minimum lot size. Quote Link to comment Share on other sites More sharing options...
gaban Posted January 28, 2014 Share Posted January 28, 2014 this time I prefer to use the leverage of 1:1000 instaforex. I think this is suited to leverage my trading needs. with leverage 1:1000 will make us the opportunity to earn more profit will be wide open. utilize leverage great if we could use it well, it will be very mengutungkan for our trading. Quote Link to comment Share on other sites More sharing options...
Stekin Posted January 28, 2014 Share Posted January 28, 2014 Leverage is the financial support that the brokers are giving the forex traders. That is to say that leverage will make a trader who his or her capital is not too much to have a higher capital. It multiplies your capital so that it will be bigger than it was. Quote Link to comment Share on other sites More sharing options...
standart Posted January 30, 2014 Share Posted January 30, 2014 since leverage available, make forex business become lucrative. if in stock market we should trade with standard contract because no leverage, in forex we can start trading with small or micro contract. which enabling us to spend little capital to start trading. Quote Link to comment Share on other sites More sharing options...
kaito kid Posted January 30, 2014 Share Posted January 30, 2014 Leverage is expressed as a ratio and is based on the margin requirements imposed by your broker. For example, if your broker requires you to maintain a minimum 2% margin in your account, this means that you must have at least 2% of the total value of an intended trade available as cash in your account, before you can proceed with the order. Expressed as a ratio, 2% margin is equivalent to a 50:1 leverage ratio (1 divided by 50 = 0.2 or 2%). but now, i used 1 : 500 in FBS Quote Link to comment Share on other sites More sharing options...
gaban Posted January 31, 2014 Share Posted January 31, 2014 since leverage available, make forex business become lucrative. if in stock market we should trade with standard contract because no leverage, in forex we can start trading with small or micro contract. which enabling us to spend little capital to start trading. of course, the leverage we can trade with small capital. For example, if we use the leverage of 1:1000, then we can trade with a capital of 1000 times that of our capital. And it is very profitable. But it can also be very large leverage detrimental to our trading. Quote Link to comment Share on other sites More sharing options...
standart Posted February 5, 2014 Share Posted February 5, 2014 leverage is additional loan capital from brokers which enabling traders to trade with standard contract. though the capital not fulfill minimal requirement to trade with standard contract. leverage available in forex only. and doesn't available in stock or commodities market. Quote Link to comment Share on other sites More sharing options...
adil007 Posted February 5, 2014 Share Posted February 5, 2014 Leverage is one benefit which is given to us by the broker through which we can raise our amount for trading in a way, we can set high leverage and reduce it according to our mind/needs, if you want me to advise I think we should not go for too high leverages as setting high leverages is very risky and can result in loss so we should use a bit lower leverages for instance. Quote Link to comment Share on other sites More sharing options...
gaban Posted February 5, 2014 Share Posted February 5, 2014 leverage as a boomerang for our trading. because of the leverage that we choose then it could be beneficial or detrimental to our trading. with leverage the greater the risk that we face will be greater as well. because it means that our margins will be smaller so that it will tempt us to trade with a lot more. Quote Link to comment Share on other sites More sharing options...
CahCuncun Posted February 6, 2014 Share Posted February 6, 2014 Leverage will help us when trading in forex, although we only use small amount as capital. We must try to maximize leverage as well as possible. Leverage is a double edged sword. And the matter is not how big leverage we use for trading, but how can we maximize leverage which we use for trading. TenkoFX just offers leverage up to 1:500, but it's not a problem for me because i'm still be able to trade comfortably in this broker. Quote Link to comment Share on other sites More sharing options...
standart Posted February 6, 2014 Share Posted February 6, 2014 leverage help traders to start trading with little capital. have chance use big lot size and it usually make traders greedy. though they are use small capital in trading. the best leverage ratio is 1:100. it enabling traders to trade with 1 cent or 10 cent lot value. depend on brokers rules regarding with leverage and minimum lot value. Quote Link to comment Share on other sites More sharing options...
tray22 Posted February 7, 2014 Share Posted February 7, 2014 leverage is simply the amount of money which our broker borrow us to trade with them because all I can see I think that the leverage do give us opportunity to enter various type of market and help increase our equity Quote Link to comment Share on other sites More sharing options...
surya77 Posted February 7, 2014 Share Posted February 7, 2014 Leverage is a system in forex trading, with small funds you can do transaction until thousand of dollar. so leverage is very help you if have a small capital. Quote Link to comment Share on other sites More sharing options...
gaban Posted February 7, 2014 Share Posted February 7, 2014 Leverage allows us to be able to make trades with small capital. But with leverage to create an account we also experience a loss if we can not control emotions our trading. Therefore, leverage is chosen must fit the needs of our trading. Quote Link to comment Share on other sites More sharing options...
surya77 Posted February 7, 2014 Share Posted February 7, 2014 leverage can help you with small fund to trade until big volume, now have a broker give you leverage like 1:90, 1:100, 1:200 or so on. but big leverahe also denager for you equity. Quote Link to comment Share on other sites More sharing options...
standart Posted February 10, 2014 Share Posted February 10, 2014 surely leverage give advantage. it enabling traders to trade with small capital only. not necessary to spend high amount of capital or fulfill standard contract like what happen in stock trading. leverage is one advantage of forex given to traders. Quote Link to comment Share on other sites More sharing options...
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