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What is leverage?


yogeshwartyagi

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Our  trading capital should be maximized as well as possible. We must have good money management skill in forex trading. We must know that forex trading is risky. If we do not have good skill, we will not get more maximal result in forex trading.

 

Be more than a trader, be a TenkoTrader

Maximizing trading capital is not an issue. Its trading properly is the issue. That's why we must not always think of maximizing our trading capital. We must think of maximizing our profit. It does not matter in my part if I have 1,000 dollars trading capital and have 100 dollars trading capital. The risk ratio in my trade are all the same.

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As far as I know forex trading has substantial risk, the size of the risk can be seen from the leverage used, the greater the leverage used, the greater the risk, but the greater the risk, the possibility of profit would be even greater. For myself, for my trading, I use the maximum leverage is 1: 500, and to further minimize the risk, I always use a stop loss and take profit as part of money management that I use.

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leverage of the broker is very profitable. because of the leverage that we can trade using the capital as small as $ 1. if we are trading with leverage 1: 1000 then we can trade with a 1000-fold capital of our capital. So that we will be able to trade with a maximum

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well, many newbies confuse with leverage but they are enjoy the system. newbies can start trading with small capital because leverage allowing them to trade with standard contract though they are have limited capital. the best leverage ratio is 1:100. traders can use higher than that but it will make minimum lot value increase high too.

Yeah i agree with that, and thanks to leverage now there are more traders that join forex. The forex market become merrier and it means more liquidity for major pairs. Also we can see more volatility in the market also turnover increment each day.

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In trading, the leverage should be tailored to the needs of traders and trading management system that will be used. I like to trade in a way scalping, therefore I use the leverage of 1: 500 with low spreads in the Armada Markets

 

yes, in choosing the leverage we have to adapt to our needs and abilities. if we still have a poor trading psychology then it would be better if we can trade with leverage as small as 1: 500. and for scalping is also better if we can trade with leverage of 1: 500

 

 

Open a PAMM account with TenkoFX for the chance to manage up to $100,000

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I think that everyone has their own target. 1:500 maybe for you but mostly traders still feel comfortable with 1:100 compared to lower or higher amount. In US, traders only got as high as 1:50, but i am still stick with 1:400 leverage which i think most suitable with my total equity now.

 

1:500 is enough for me. I also use that leverage to start trading with tenkoFx. I try to maximize what i have get from TenkoFx. Leverage must be used wisely because it will make us get more maximal result and get loss in forex. We must be discipline with our money management.

 

"Invite your friend, get $10 and win $5,000"

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  • 1 month later...

 

1:500 is enough for me. I also use that leverage to start trading with tenkoFx. I try to maximize what i have get from TenkoFx. Leverage must be used wisely because it will make us get more maximal result and get loss in forex. We must be discipline with our money management.

 

"Invite your friend, get $10 and win $5,000"

 

 

  if I prefer trading with leverage 1: 1000 of instaforex. By trading with small capital if high leverage the opportunity to get a bigger profit will be wide open. therefore we must utilize leverage well

 

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Forex leverage is good to a trader since it helps one to trade on various volumes of trade.Without leverage,it would be expesive for a common trader like me to trade.Forex requires high amounts of money and the brokers plays a pivotial roles by lending us a huge amout of money that enables traders match any volume of trader.Leverage is good and i think its what attracts traders to forex alot.

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  • 2 months later...

High leverage help traders can trade with a maximum leverage and comfortable because then we will be able to trade using a small capital. trading with high leverage have a very big chance that if we could maximize the leverage well then we will be a maximum trading results

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Leverage in fx according to me is just another tools, it will helps to leveraging the capital that we have. So to make it simple, the reason why we can trade with $1000 even we have only $10 or $100 it is because of leverage. Some traders that has around $10000 can even trade for $100000 = 1 lot thanks to leverage.

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Again that is partially true, it could be a very good advantage for trader and i must admit it, but in the other side leverage could be a trip to next pitfall for a trader, without being wise when using this feature a trader could loss more than that they could imagine before.

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in forex work while we are making trade then we have to select liverage which depoud upon the money if you have huge amount then its better to select huge liverage but if you have small money then select small liverage .larger the liverage larger the profit but if you make mistKe then same thing applied but in case of loss you have to loss huge amount og money .

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Leverage in a broker must be maximized. Although we get different leverage, we must maximize leverage for trading. In TenkoFx, i got 1:500.

TenkoFX investment forum for PAMM account investors

 

 

yes, the leverage of the broker does need to be utilized properly because then we will be able to trade with the maximum. for now I am more comfortable trading with leverage 1: 1000 in instaforex, so that will make us able to maximize our capital well when trading with high leverage

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  • 2 weeks later...

Leverage is simply a term use in forex trading in which we offer our trading capital as our collateral. That's why the higher the leverage the more lot size we  can trade. And since our  capital is our collateral the higher the lot size the lower our margin will be resulting to much higher risk in getting SL.

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  • 1 month later...

Leverage of the broker is very profitable for traders because then it will make us able to trade with the maximum. Therefore we need to try trading well, so that will make us able to trade well. By then we could leverage trade using small capital like $ 1

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