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Leverage effective or risk!


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Leverage refers to the amount you are allowed to trade beyond your deposit and by how much you can multiply your profits. High leverage is suitable for risk takers seeking high rewards. However, high leverage is not recommended for beginners. Almost all broker provides high leverage. My broker Eurotrader offer me 1:500 leverage. I always use leverage with proper risk management.

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Live account and demo account both are the same operating system. But in demo account there is no need to invest any capital. This is for learning the forex before investing in the market. On the other hand live account needs investment and it is like a real account where profit and loss are genuine. Demo account is just for the beginner. When a trader become professional he can operate a live account. Demo account is a  risk free account. On the other hand live account is full of risk. When I was a newbie I opened a demo account in Forex4you to learn the basics of forex. After getting all the knowledge I moved to their live account. Now with the help of them I make profit consistently.
 

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Leverage is effective and also risky. It is double edge sword. It can turn your small investment into big one. However, there is a high possibility that you can blow up your account overnight. So, use leverage carefully. I recommend new traders to use low leverage at the beginning. As for me my broker Eurotrader give me high leverage up to 1:500 but I only use 1:100.

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  • 4 weeks later...

Leverage is a good facility provided by the broker. You can control huge money despite having little. However, leverage is a double edge sword. It also exposes risk. New traders often blow their accounts with a couple of trades due to using high leverage. Almost all broker offers high leverage in the market. My broker Eurotrader also offers high leverage. However, I use low leverage with proper risk management.

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Frankly speaking, there is risk very much with all businesses and Forex is no exception. But it doesn’t mean you can’t lower the risk, it’s just about dedication for it. I never find it risky because I maintain fairly decent money-management. It also helps via broker like FreshForex, as they are amazing to do with their 101% Tradable Deposit Bonus, it just simplifies my way of working.
 

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