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higher leverage make you lose your deposit faster. so it is not safe to use higher leverage specially if you are not that good in trading just yet. better use lower lot. at least with lower lot when you lose it is easier to recover. so i choose leverage 1:500 in my broker now
Leverages are good, but you have to be very skillful in order to make use of such huge leverages, loosing with such huge leverages will make you end up in trouble.
I dont feel higher leverage could lead to higher losses. There are many factors that can contribute to the loss. If one enters the market against a strong trend, bad money, trade & lot management, trading blindly etc can be better reasons for higher losses than just high leverage alone. High leverage coupled with all bad trading habits can wipe out the trading account. there is no doubt on that.
leverage large and small will be very detrimental to a trader or just highly profitable for the trader, depending on the individual trader. if we have a good psychology then trading with high leverage is very profitable. but I prefer to trade with a leverage of 1: 500 of tenkofx
If you don't know how to utilize high leverages then definitely you can make loss. Leverages are good for trades that you are absolutely sure off.
Higher leverage gives you a possibility to open more trades simultaneously due to smaller amount of margin needed to open a trade. Backside of high leverage is user's self-confidence when he/she opens unnecessary trades without proper knowledge or preparation. Now, I use leverage 1:500 in Armada Markets. I think this leverage is sutable for me.
Does higher leverage lead to higher loss? the answer is depend on the trader itself. if you use high leverage but the way you trade still with very tight and discipline money management, it won't lead you to higher loss. if you increase your volume to open trade because you have more space from the higher leverage, then surely it will lead to higher loss. Now, I using leverage 1:500 in TenkoFx
For leverage, we must use leverage with has been adjusted with our capital.I just use small leverage for trading. it's maximal leverage from TenkoFx. And we must try to maximize that leverage as well as possible. Using 1:500 for trading, also helpful. Even, we can start trading with small amount.
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
Leverage should be used wisely and according to trader capability, one should not be lured into it.Quote:
Originally Posted by Uncle Gober