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What is leverage?


yogeshwartyagi

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@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.

If you read my post again I say its good if you use aggressive trading. If you use low leverage then your using passive strategies. Its only going to cause you serious harm if you don't know your strategy. I double my money in just one week simply because of this strategy and so far I don't loss money because of this strategy.

But even if you are using low leverage if you don't know how to trade you will still end up losing money.

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  • 1 month later...

. Leverage actually play an important in forex trading, a number of traders like it for the reason that they can help them make more from forex market, but others don't like it since it can make them misplaced entire cash. all of this depends on the forex information you mastered.

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  • 5 weeks later...

it is not good to choose high leverage if you are just newbies. it is a double edged. don't think only of the possible profit. but also the possible losses for using that.

most of the newbie does not understand what is leverage and just trading using high leverage and expect great gains without the use of strategic, so that when they experience loss it will lose all the capital that belongs. therefore a newbie is not recommended to start using high leverage because they will always have a loss because there is a good strategy.

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true because by using high leverage is not akanmembuat beginners feel comfortable in doing trade, especially if it's a beginner start trading with a small amount of capital in trading and this will make the beginner a lot of pressure because of the size of the existing lot will make them confused to find resistance pips strong and better beginner's trading using low leverage when opening a trading account

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  • 11 months later...

Its fun if you can gain profit from it. Its better profit than low capital but also high risk. However, your trade is monitored so they will end your trade if its in trouble so its not like you will get to lose all of it. So, you will get some supervision when you use leverage. Now, leverage is alright if you use it modestly and anything in moderation is good. 

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  • 3 months later...

Having a high leverage, this investor can purchase foreign exchange value repeatedly his / her buying electrical power. Many traders goes using a high leverage when his or her analysis indicates a natural light-weight and there may be very little chance to shed. Nevertheless, SL ought to be witnessed and once the market industry stats go up, it will trek the revolutionary amounts.

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  • 1 month later...

Leverage is a system in finance or Forex which offers you a chance to increase the value and worth of your money or trading capital so as to help you earn more. In the real sense, your capital may not have gotten to that level of profit but with leverage, you can. It is a two edged sword which can make or mar a trader.

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Well simply leverage is a system which we can perhaps think of as a extra benefit for us, it helps us to do trading with our capital by making it bigger by a lot of time, personally I prefer to use a leverage of 1:100, but we must know that leverage has both benefits and disadvantages.

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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.

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Everyone have their own explaination of how and what is leverage in the forex trading market for me I can just simply define leverage as the amount of money which your broker give to you to trade in the forex market with this is the real thing which we need to know its help us increase our margine and liquidity

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Leverage has so many advantages when the trader manages it well. It's about how well he understands leverage system and how good he uses it. A high leverage means high profit when it's positive and high losses too when things turn out the other way. It is always better when a trader chooses a smaller leverage and minimized the chances of losing.

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  • 2 months later...

Leverage has so many advantages when the trader manages it well. It's about how well he understands leverage system and how good he uses it. A high leverage means high profit when it's positive and high losses too when things turn out the other way. It is always better when a trader chooses a smaller leverage and minimized the chances of losing.

 

Yes, leverage has many advantages in forex trading. With leverage, we can trade with small amount and get maximal result. But trader must understand how to maximize leverage for trading. Every broker provide different leverage for their clients, in TenkoFx, trader can use leverage up to 1:500. But using 1:500 for trading is enough, i also just use 1:500 for trading in forex. We must know, if we use high leverage, the risk will be higher too.

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leverage is the leverage provided by the broker to the trader, the leverage we can trade with small capital. but to choose the leverage must be careful because not all favorable leverage, especially if we have a bad psychological

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  • 3 months later...

leverage provided by brokers is very beneficial for all of us, because of the leverage it will make us more advantaged trading. But if we choose the leverage of the broker then must be more carefully again. due to the leverage of the broker then we can trade using small capital. The greater the leverage, the greater the benefits

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i think leaverage has no effect in increasing our risk.why do i read many members saying our lot will greately be influenced by our leaverage. Im doing it from my first day till now hopefully . I am able to earn some fixed profit also.

Then what you think is wrong. If you are trading right now what leverage do you use? Leverage can affect our lot size. The higher our leverage the more lot size we can use. The draw back is that our free margin will be less and less. In the end just a little pips movements and we can get stop out if we are not careful. leverage is protection against over trading.

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leverage is very helpful for traders, because the leverage we can trade using small capital. for it is for beginners please always use the appropriate leverage to capital and trading requirements so it will be trading with a maximum

It can also make us loss money easy. I have two accounts with the same trading capital and using the same lot size. the other one has 1:500 leverage and the other one has 1:50 leverage. Funny thing is that in my 1:500 leverage I have 800% free margin while in the other account that has only 1:50 leverage I only have 180% free margin. guess who got stop out first? Its the 1:500 leverage. Although I have the same trading position open.

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It can also make us loss money easy. I have two accounts with the same trading capital and using the same lot size. the other one has 1:500 leverage and the other one has 1:50 leverage. Funny thing is that in my 1:500 leverage I have 800% free margin while in the other account that has only 1:50 leverage I only have 180% free margin. guess who got stop out first? Its the 1:500 leverage. Although I have the same trading position open.

 

 

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

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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

 

Yes, good money management skill must owned by traders in forex. We  can try to hone skill using small amount. You can make deposit with minimum deposit in a broker, then use maximum leverage and try to learn managing our fund.

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