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What is mean by Leverage in trading?


kiranchandra

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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

 

Newbies as being unaware of the market trends should also not use too high leverage in the start as higher leverage means higher damages.

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therefore to minimize the risks that may occur, are suggested for novice traders to learn and recognize beforehand about using forex trading demo account. beginner traders themselves must also make use of science anything contained on demo accounts, and it is expected that already in the sciences can be used when using a real account.

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Newbies as being unaware of the market trends should also not use too high leverage in the start as higher leverage means higher damages.

Many expert and trader that already having good knowledge they suggested to using low leverage than high leverage, but almost trader as retail trader they choosing high leverage because usually having higher opportunity to open lot size as long as they can control their risk management still enjoy using high leverage
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I agree, low leverage its own goal to minimize the risk to the maximum and as the adaptation process. in determining its own leverage should be calculated carefully, especially for beginner traders who are new to real accounts, are suggested for beginner traders to take advantage of existing knowledge on a demo account first. if the word is enough to optimally utilize a demo account, can trade using a real account with leverage of 1: 500,

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I agree, low leverage its own goal to minimize the risk to the maximum and as the adaptation process. in determining its own leverage should be calculated carefully, especially for beginner traders who are new to real accounts, are suggested for beginner traders to take advantage of existing knowledge on a demo account first. if the word is enough to optimally utilize a demo account, can trade using a real account with leverage of 1: 500,

 

Leverage in a broker also  must be maximized as well as possible. Although we just get small leverage in a broker, it will helpful too. 1:500 is enough to start trading with small amount like 5 USD.

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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.

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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.

Leverage especially high leverage is like as double edge of swords, in one edge will increasing profit but also will increasing the risk, if any trader using high leverage without risk management strictly usually will leading them become greedy because want making huge profit at short time, while the market actually move very dynamic and unpredictable
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Indeed currently so many broker offer high leverage and they like as competing each other with offer higher leverage, but also using high leverage as trader need understand with the risk too, higher leverage can boosting profit but also can making quick loss too, as trader need using margin wisely

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broker election so is important. because the broker itself is contributing factors that influence the success of a trader, then the selection of a broker for a trader is very important, suggested to traders do not just choose a broker who gives comfort in trading, however, select the broker that also supports the trading success of a trader. in order to get the maximum profit with the risk that can be minimized optimally.

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Yes all trader using leverage in forex trading, but might not all trader prefer using high leverage although currently some broker offer high leverage, some profesional trader that already using huge capital usually they prefer trading with low leverage because safe than using high leverage

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I agree, determine its own leverage should be calculated carefully, especially for beginner traders who are new to real accounts, are suggested for beginner traders to take advantage of existing knowledge on a demo account first. if the word is enough to optimally utilize a demo account, can trade using a real account with leverage of 1: 500, with the goal of minimizing the risk to the maximum, and as a process of adaptation.

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Yes very good if trader beginner they need learn and practice in demo account, as early preparation and they can choose leverage that they like, if in demo account they can learn well how to making profit hence will good as early preparation, and they can learn how to manage money in real account with start using small capital first and choose leverage according tested on demo account

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Leverage is basically sort of a loan that we don’t need to pay, so even if we are making low investment, it’s still possible to work with higher amount in a way of working. This is what makes Forex so good and popular, if you take out the leverage part from Forex than it’s not all that great at all. So, it’s really important that we use leverage wisely because it makes all so much difference and will be the deciding factor in whether we are successful or not. I operate with 1:500 leverage with OctaFX broker which is highest and is very handy to allow me to work smoothly even with low amount, so that really helps me succeed and perform nicely.

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Now many broker offer high leverage for trader and as trader they can choose leverage that suitable with them, using high leverage is good for small capital because increasing opportunity, but if start using big capital I think safe using low leverage because will prevent from greedy

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of course, will greatly benefit all if we can maximize the leverage that we have both chosen. for now I am more comfortable using leverage 1:1000 of instaforex. important thing we can maximize well.

Leverage more than 1:400 is unnecessary in my opinion. That's what I need. Different traders may have different need.

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Now many broker offer high leverage for trader and as trader they can choose leverage that suitable with them, using high leverage is good for small capital because increasing opportunity, but if start using big capital I think safe using low leverage because will prevent from greedy

determine leverage itself depends on its own traders. a novice trader can not use the same leverage as experienced traders because of different abilities and experience. therefore suggested to the novice trader uses a small capital with a leverage of 1: 500 for the purpose of the adaptation process when using a real account.

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determine leverage itself depends on its own traders. a novice trader can not use the same leverage as experienced traders because of different abilities and experience. therefore suggested to the novice trader uses a small capital with a leverage of 1: 500 for the purpose of the adaptation process when using a real account.

Yea for them as beginner suggested to start using small capital and not using big capital if they on first time trades, and they also can using bonus deposit that offered broker to start on real account so they will look their margin strongest after claim bonus deposit, and about leverage using 1:500 indeed already included as high leverage
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it even if it could use a demo account to the fullest. because if used seriously a lot of knowledge or knowledge that we can get from a demo account. besides the benefit itself is trading demo account using virtual money, in other words it can minimize the risks that exist when we practice or strategy using a demo account.

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  • 9 months later...

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 leveragethat we will use. Because of the greater leverage that we select, the greater the risk that we face. and i am use FXB Trading as my broker, because they always give me bonus and no deposit.

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