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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. I use leverage 1:500 in TenkoFx now
It is up to the trader and the fact that he or she can control emotions. High leverage can give you the chance of being in the same level with the other traders with more money. $500 can turn your account to $5000 account with the right leverage. This will even give you the possibility to trade the metal gold. Only greed is the thing that kills us, we take advantage and increase the lot size that kills the account.
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
You should know how to use high leverages, it requires skill and experience to make use of leverages and new trader should avoid high leverages, or else it could turn out to be a huge loss.
High leverage is maximum time create loss in forex market but if a trader correctly analysis the market then he make large amount profit in short period. 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
No, I don’t think it is that way if we have the skills, knowledge and experience that it does not matter what leverage we use, it will definitely bring success while if a newbie is trading then he might misuse the high leverage. I feel great trading with OctaFX broker company, as they have great leverage up to 1.500 for all accounts including the Micro, it can be started with just 5 USD investments yet we get great leverage which helps to trade even with low investment.
Leverages are very attractive, but you should be a good trader to make use of it, and if you fails then yes high leverages will make you pay higher losses.Quote:
Originally Posted by Uncle Gober
So true mate, it is often a forgotten thing as most traders feel having high leverage is an automatic key to success, but it is far from that. If we want to be successful than we must rely on knowledge not just leverage. It is great benefit having high leverage as I mention above, but then we have to show some skills in order to gain full use of it, otherwise it can easily lead to heavy losses. I always set my leverage to maximum to 1.500 with OctaFX, it allows me to scalp without any restrictions, but remember I have been trading for last 2 years!
Profit or loss depends upon the use of Leverage in an appropriate way, High leverage provides an opportunity for high profits too, so it all depends upon individual traders.
Higher leverage is both useful and harmful. Useful because you will be able to trade with low balance. And its harmful side is, it will let you to get bankrupted so easily. It will help you to take big risks and may turn you to zero. I am using 1:500 leverage and doing fine untill now because i never actually use the leverage to fullest
Yes, there are advantages and disadvantages. Traders must understand it and also must know the right way to maximize leverage when trading. I also just use 1:500 in TenkoFx. It's also enough to trade with cent account, try make deposit $10 in cent account from TenkoFx.Quote:
Originally Posted by Uncle Gober