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Leverage and spreads


uncle gober

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Spread and leverage are two important factors for traders to choose brokers. It's very important to choose only the best forex broker which would have attractive leverage (:100 or 1:200, 1:500 ), because such sites can be scam). We need to invest our money only into most trusted Forex brokers. otherwise, you can loose all your investments. Every new forex trader should choose one of the best and most attractive brokers and he should work only with one broker at first.

 

How about you?

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Well higher leverage is fine for traders who seek higher lot size to spend. This is normal to have higher leverage since forex itself already has high risk. As for spread the tight spread is a must because this is another problem if getting wider, just information at the moment i am with  1:400 leverage and my account still fine.

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leverage enabling us to start trading with small capital. its form of loan margin. though we are trade with small capital, profit and loss same like if we are trade with big capital. when we are has no good knowledge and strategy, we will able to make our small capital raises high.

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Leverage and the spread is one of the ways that make our trading can be comfortable, I use the leverage of 1: 500 and use a lot of the smallest since I use a small capital in my broker now

 

You are good traders who can taking an advantage of your total leverage. Leverage and Spread has indirect connection, so it is just like other terms to the others. But leverage could give you temptation to get higher lot size which also could increase your total spreads.

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The spread is a key part of any financial market. If you have done Forex trading before, then you have probably noticed that there are two types of prices – an ask price that is used when you buy the asset, and a bid price that is used when you sell the asset. Usually, there is a small difference between these prices – this different is called the spread.

 

leverage will help traders to improve the balance so it can trade using small lots and spread helps traders to be able to get the difference between bid and ask prices are small. Now I am trying to combine the advantages provided by the broker Tickmill with a leverage of 1: 500 and Spreads from 0 pips

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Well i think that mostly traders already know about this isn't it? Leverage give us more power by leveraging our current equity to the higher places, we can buy $1000 for $10 or even lower for higher leverage, I don't see much connection with spreads but spreads should be affected our trading too.

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  • 2 months later...

I dont' see much correlation between this two at the moment, leverage is leverage and spreads is spreads to me. Spread actually is our cost while leverage is the amount of money that we "borrow" from broker in order to increase our purchasing power from total capital that we got

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I dont' see much correlation between this two at the moment, leverage is leverage and spreads is spreads to me. Spread actually is our cost while leverage is the amount of money that we "borrow" from broker in order to increase our purchasing power from total capital that we got

Yes, because both are different thing. Leverage will help us to trade although we only have small capital in our trading account and spread is the difference between bid and ask and usually it's earning source of broker.

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  • 2 weeks later...

Leverage and spreads according to my knowledge does not have much correlation to each others, it is more like separate entity that connected with total amount of lot size that you use. But those two will play a bigger role in your trading. Leverage is the key to access higher lot size without need to sacrifice your deposit so much, while spreads is your initial expense when you open a position.

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  • 2 weeks later...

leverage is helpful for traders because of the leverage that we will be able to trade using a small capital, therefore we need to use good leverage. For the moment I am more comfortable trading with a leverage of 1: 1000. with high leverage will have a great opportunity

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leverage is helpful for traders because of the leverage that we will be able to trade using a small capital, therefore we need to use good leverage. For the moment I am more comfortable trading with a leverage of 1: 1000. with high leverage will have a great opportunity

 

Yes leverage provide a trader a benefit to increase the margin without using a big capital. The use of small capital in the forex business is highly recommended for beginners and novice traders should indeed use the minimum deposit offered by the broker. But make sure that we have the knowledge that can be applied in a real account. I suggest to use Video Tutorialto learn basic forex

 

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  • 5 weeks later...

Yes leverage provide a trader a benefit to increase the margin without using a big capital. The use of small capital in the forex business is highly recommended for beginners and novice traders should indeed use the minimum deposit offered by the broker. But make sure that we have the knowledge that can be applied in a real account. I suggest to use Video Tutorialto learn basic forex

 

 

 

I do not get it it seems beating around the bush about this all. For me leverage and spreads are thing that we can not split each other, as we know it spreads influence on what we should spend while leverage help us to get bigger lot size is not it? With knowing both of these factors you can calculate risk.

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trading using high leverage will allow us to trade with the maximum. therefore, we need to be more careful in choosing leverage for trading. we can use a demo account to test out the leverage to be used for trading and therefore we will be able to get proper leverage

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