andry777 Posted March 27, 2011 Share Posted March 27, 2011 @Nikhil If you wanted to increase your profit, it's okay to improve your lot size but you must increase it with calculation how much dollars that you will allow to loss, there is risk management always. So even you can make higher profits, the risk won't be too high which made your account in MC condition. Quote Link to comment Share on other sites More sharing options...
wasi90lkv1 Posted April 3, 2011 Share Posted April 3, 2011 leverage can be both good and bad. the higher the leverage, the higher the risk. if you have $5000 capital and you use 1:500 leverage, $1 equals to $500 if i am not wrong. Quote Link to comment Share on other sites More sharing options...
andry777 Posted April 15, 2011 Share Posted April 15, 2011 @wasi I don't know for sure but as I knew, higher leverage will be lower risk because it will hold more pips and also it will give lower profits too. As an example , if we used 1:1000 so it means 1 pips = 10 cents then if we used 1:100 leverage then 1 pips = 100 cents (1 dollar). So lower leverage will make the value of each pips will be higher in dollars. Quote Link to comment Share on other sites More sharing options...
boniez Posted April 21, 2011 Share Posted April 21, 2011 @wasi I don't know for sure but as I knew, higher leverage will be lower risk because it will hold more pips and also it will give lower profits too. As an example , if we used 1:1000 so it means 1 pips = 10 cents then if we used 1:100 leverage then 1 pips = 100 cents (1 dollar). So lower leverage will make the value of each pips will be higher in dollars. A good explanation, I wonder why many people have expressed leverage size as lot size, yet it is different, but the higher it is good for beginners, because it can secure their account even if the profit is too small Quote Link to comment Share on other sites More sharing options...
andry777 Posted May 27, 2011 Share Posted May 27, 2011 @Boniez Yes, it is safer but there must be limitation about how many orders that you made. With higher leverages, you can hold higher amount of pips and because of that, many traders opened too much orders so they suffered Margin call. Quote Link to comment Share on other sites More sharing options...
boniez Posted June 9, 2011 Share Posted June 9, 2011 @Boniez Yes, it is safer but there must be limitation about how many orders that you made. With higher leverages, you can hold higher amount of pips and because of that, many traders opened too much orders so they suffered Margin call. right, usually with us are given the opportunity to open posis with large lot size, then most of us use it to get the maximum profit, but it would be dangerous if it turns out we were wrong prediction Quote Link to comment Share on other sites More sharing options...
indieover Posted June 13, 2011 Share Posted June 13, 2011 it is very dangerous to use this leverage and choose a big one. because you will be tempted to open big lot. although leverage does not necessarily responsible for big lot but it enables the traders to choose big lot. so it is better use small leverage then to minimize our risk. Quote Link to comment Share on other sites More sharing options...
andry777 Posted July 1, 2011 Share Posted July 1, 2011 @boniez It will be useless to use higher leverage but if you used high lot size too. It will be high risk too in the end. What I said, using higher leverage but using normal lot size. It will hold more pips than we used low leverage with normal lot size but many traders will be more careless because of this condition and they opened too many orders so the result, its risk will be same. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted September 4, 2011 Author Share Posted September 4, 2011 I agree with you @andry very high leverage is really risky - not only in case of loss you have to bear huge loss but also your trade can be closed unwantedly due to margin requirement - while with low leverage you can wait for your trade to return in profit. Quote Link to comment Share on other sites More sharing options...
wasi90lkv1 Posted September 22, 2011 Share Posted September 22, 2011 i used to not understand what a leverage was. but a few months ago, i learned about it. anyway, based on what i learned leverage is something forex brokers use to make money from. you can win a lot, you can also lose a lot. choose the leverage level wisely. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted September 25, 2011 Author Share Posted September 25, 2011 i used to not understand what a leverage was. but a few months ago, i learned about it. anyway, based on what i learned leverage is something forex brokers use to make money from. you can win a lot, you can also lose a lot. choose the leverage level wisely. You said it rightly - the more leverage help traders trade many times more than their actual capital, and the bigger trades certainly help broker to earn more in form of spread... Yeah i agree more leverage can be risky so chose it wisely. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted September 25, 2011 Share Posted September 25, 2011 Is there advisable leverage for the newbies or having low deposit in forex? Because i have seen 1:100 and 1:500 so what is the best to choose and how these leverage affect the forex trading. If the higher leverage will mean easy earnings or lower leverage will be safer. Quote Link to comment Share on other sites More sharing options...
flybiz08 Posted March 28, 2012 Share Posted March 28, 2012 I think there needs to be some forex searching before you post on issue that you are not clear with. Leverage can affect a traders volume and leverage in a simple form is borrowed funds. In other words, a high leverage means that we have borrowed a lot and can take trades with lot sizes that the money we initially deposited cannot take. Leverage therefore can amplif gains and can amplify losses. That is why it is called a two-edged sword. Quote Link to comment Share on other sites More sharing options...
charlly007 Posted April 26, 2012 Share Posted April 26, 2012 Leverage simply means the % amount of money you are allowed to borrow from the broker when you open a position. Typically a Broker would allow you borrow 99% of the total value required to open a trade and you only need to come up with the remaining 1%. So if you are about to trade $10000 then you only need to have $100 of your own. Usually Forex broker won’t charge you interest on the borrowed amount. Wow,thanks very much for that explanation.I have been thinking what is exactly meant by leverage.Now i have know that.I never known that we can still get money from brokers to trade online.I think all these are making trading alot more easier. Quote Link to comment Share on other sites More sharing options...
indieover Posted April 27, 2012 Share Posted April 27, 2012 I think there needs to be some forex searching before you post on issue that you are not clear with. Leverage can affect a traders volume and leverage in a simple form is borrowed funds. In other words, a high leverage means that we have borrowed a lot and can take trades with lot sizes that the money we initially deposited cannot take. Leverage therefore can amplif gains and can amplify losses. That is why it is called a two-edged sword. yeah it can be advantageous or disadvantageous on our side. it has nothing in between. so it is like taking risk also for the hope that you would gain more . but if you loss you would loss more if you have increased your leverage. Quote Link to comment Share on other sites More sharing options...
Sixteen Posted May 3, 2012 Share Posted May 3, 2012 Leverage helps us to trade a good capital in forex with our little investment but i dont think leverages can help newbies in forex who hasnt got experience as they may tend to loose all of their investment which is really painful. Going for lower leverages tends to be better as we get a little loss if we loose. Quote Link to comment Share on other sites More sharing options...
brokenblade Posted May 8, 2012 Share Posted May 8, 2012 Leverage is what many traders use. Without leverage, we will only earn so much money from our trading. Unfortunately, a lot of people over leverage their accounts and as a result, they lose a lot of money. I would advise the newbies to keep their leveraging to a minimum until they have more experience with Forex trading. Quote Link to comment Share on other sites More sharing options...
budado Posted May 9, 2012 Share Posted May 9, 2012 Leverage is what many traders use. Without leverage, we will only earn so much money from our trading. Unfortunately, a lot of people over leverage their accounts and as a result, they lose a lot of money. I would advise the newbies to keep their leveraging to a minimum until they have more experience with Forex trading. I advice newbies not to trade in real account until they have gain experience in demo account. Because its good to start trading in real account but lets make sure that we already build enough experience via demo account trading as theirs no way we can earn money if we keep on losing in real account because of lack of experience. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted May 10, 2012 Share Posted May 10, 2012 It is really important to have leverage and understand because we go for real trading most of the times we can test the different leverages in the demo account although I have noticed that not all demo accounts have all the leverage of a broker. Well, we can understand this also because it also determines for how long or short our margin will be. Quote Link to comment Share on other sites More sharing options...
famouspublisher Posted June 3, 2012 Share Posted June 3, 2012 The description of "leverage" is having the capability to management a huge sum of cash using none or very little of your own cash and credit the relax..... Quote Link to comment Share on other sites More sharing options...
famouspublisher Posted June 4, 2012 Share Posted June 4, 2012 The use of various financial equipment or obtained financial commitment, such as edge, to improve the prospective come back of an financial commitment is called or known as leverage. Quote Link to comment Share on other sites More sharing options...
luckyvoy Posted June 13, 2012 Share Posted June 13, 2012 Leverage is most attractive feature of forex trading, brokers offer leverage several times our capital often 100 times or even more in case of some broker. This allow us to trade many times bigger trades than we could otherwise. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted June 18, 2012 Share Posted June 18, 2012 Well, its really attractive as well as risky. We are glad that they come up with a good decision to have different leverage. That's why now I'm still using and preferred to have 1:1000 leverage and also 1:500 for me to be able to survive the market. As its more dangerous and risky to have 1:1 trading. Quote Link to comment Share on other sites More sharing options...
budado Posted June 22, 2012 Share Posted June 22, 2012 Leverage is just one factor in how you going to manage your funds in forex trading. Because theirs also lot size and account size. Most of use uses 1:1000 leverage. this is good especially if you are doing aggressive trading. In which its either your way or the highway. But I guess its worth it if you have a bonus funds that you can trade that if you loss it you loss your bonus funds but if you make it then you earn good. Quote Link to comment Share on other sites More sharing options...
rexway Posted June 24, 2012 Share Posted June 24, 2012 @budado chosing leverage as high as that can cause serious harm to your trading account but the right thing I guess we should all do is to try and minimize our leverage level,so its important to put this into consideartion because the higher the leverage the higher our chance t loos and risk level. Quote Link to comment Share on other sites More sharing options...
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