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What is leverage?


yogeshwartyagi

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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

i think big leverage can help us to do forex trading even we just have a few capital. just like at my account forex trading in HiWayFx, i do forex trading by use leverage 1:1000, so i still can do forex trading even i just have a few capital.

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Wow, that sound so bad also to be honest 1:1000 sounds live overleveraging to me and it is not healthy to your account. And based on my observation to your broker it seems they aren't well regulated by those strict regulators. Anyway, Leverage is important part in forex but still it shouldn't be misused since the risk is higher even helping us  a lot if we know how to implement it.

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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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  • 4 weeks later...

leverage similar to the amount of money lent by the broker so that we can trade with more capital. As we are trading with a capital of $ 100 using the leverage of 1: 1000 it means that we can trade with a 1000-fold capital of our capital. This will improve our margins

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Well we are here talking about leverage isn't it? From what i know leverage is a tool to help your capital increase in its value but also increase the risk. the more its value the more your capital will increase its value which give you more advantage since you can afford bigger lot size for you.

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Leveraged trading works by establishing a rate you can use for every dollar in your account. In the Forex market, leveraged trading exists to create the possibility of making a bigger profit. Leverage is necessary because Forex trades involve very small differences in price. The difference can be a very small part of one cent.

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  • 1 month later...

leverage is very profitable for traders because of the leverage that we will be able to trade with the maximum and comfortable. for that, we have to use leverage so well that would allow us to trade with the maximum. with leverage then we will be helped to trading with a maximum

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leverage is very profitable for traders because of the leverage that we will be able to trade with the maximum and comfortable. for that, we have to use leverage so well that would allow us to trade with the maximum. with leverage then we will be helped to trading with a maximum

 

Leverage will help us to trade with small amount but it will also make us use big lot size if we can not control our emotion. That's why we must be wise in choosing leverage for trading. 

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Leverage is what helps traders to be able to trade without leverage, you may need to invest with the same amount of your lot size, in this case the lowest size is $1000 so you need to invest that much at least. So imagine, how many people in the world now that use $1000 as their minimum investment? Not so much isn't it?.

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Leverage is what helps traders to be able to trade without leverage, you may need to invest with the same amount of your lot size, in this case the lowest size is $1000 so you need to invest that much at least. So imagine, how many people in the world now that use $1000 as their minimum investment? Not so much isn't it?.

Leverage will helps us when we are trading with small amount. And surely, we must learn how to manage fund to make it be maximum. We do not need to invest in large amount, invest amount which we are ready to lose it.

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Leverage will helps us when we are trading with small amount. And surely, we must learn how to manage fund to make it be maximum. We do not need to invest in large amount, invest amount which we are ready to lose it.

I kinda agree with this, so that's why some brokers are offering large leverage and we can use it if we just have small amount of capital (a spare from your 9-5 job's salary)

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I think if we are trading without leverage then we need to have funds to start trading. but fortunately there is leverage in forex so that we can trade using small capital. Trading using high leverage is very helpful for traders who have little capital
 

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Leverage is good supporting thing for traders they can trade in forex market using leverage having less amount in capital . My broker Mayzus offers me leverage up to 1:500 . It is good for me I can decide according o market how much leverage is suitable for me. I feel happy having no slippage or re-quotes in trading with Mayzus .

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In fact  and up to now leverage still suppport foreign exchange traders, that is the reason why we can trade with such a small amount, if there is no leverage i cannot imagine how can i trade in forex. It would be such a bad idea not to implement leverage in forex, since that would destroy the ecosystem which we have today.

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Everyone have their own explanation 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 margin and liquidity 

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the leverage is the thing which characterizes the forex market, you can't find leverage in stock markets for example.

 

without leverage I think 50% of traders around the world will not be able to just trade.

and it also can kill your money on the account. just saying)

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the leverage is the thing which characterizes the forex market, you can't find leverage in stock markets for example.

 

without leverage I think 50% of traders around the world will not be able to just trade.

 

 

Right, we can not start trading in forex without leverage because we need huge amount as balance in our trading account. But leverage also make us lose our money if we can not use it wisely

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Right, we can not start trading in forex without leverage because we need huge amount as balance in our trading account. But leverage also make us lose our money if we can not use it wisely

 

That's why we need to consider this, balance it with our capital when it comes to forex trading. It's very risky if we select the bigger leverage but we couldn't handle the risk of it...

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Each trader has a choice regarding the leverage used, make sure that the leverage used to help us obtain the best results. I now use the leverage of 1: 500 in TICKMILL. I think this suits me leverage applied with lot 0.01 in ECN accounts

 

Kinda prefer low leverage to increase our money management skills because we may consider the advantages of higher leverage but we also need to remember that the risk is pretty much bigger.

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  • 1 month later...

Kinda prefer low leverage to increase our money management skills because we may consider the advantages of higher leverage but we also need to remember that the risk is pretty much bigger.

 

indeed for trading by using leverage is great then have a higher risk and therefore we need to constantly improve leverage so well that would allow us to trade well as with a leverage of 1: 1000. for that, we should use the MM and RM good

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Leverage is an essential part of margin trading however for any newbie i suggest keeping the leverage low in start as high leverage can bring high damages as new traders might not aware of the market.

It will help us to start using small amount. Try to more improve trading skills if we want to earn more profit although we just use small amount

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