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What is mean by Leverage in trading?


kiranchandra

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@bearhugs, this is very correct we need small leverage to move on big and huge leverage will surely make the traders to trade with agrieveness and this will result in loss so small leverage is the right key.

The high the leverage the higher your chance to loss for exxample if an average speed a trader suppose to lose is 5pips with leverage of about 100:1 this can increase to 20pips in more higher leverage

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The best leverage in Forex trading is 1:100 or 1:200. Small leverage is best for new traders, after getting considerable experience in Forex trading, we can using big leverage like 1;500 or more. But any how the safe side is using small leverage.

 

 

Leverage will helps us to trade although we just have small amount in our trading account. Leverage also must be maximized then we also must be discipline. We can try to use demo account first to start trading

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Leverage will helps us to trade although we just have small amount in our trading account. Leverage also must be maximized then we also must be discipline. We can try to use demo account first to start trading

 

Yes, in forex trading then we need to be able to utilize leverage because leverage well then we will be able to be trading well and maximum. Trading with leverage will help all the traders that small capital

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Yes, in forex trading then we need to be able to utilize leverage because leverage well then we will be able to be trading well and maximum. Trading with leverage will help all the traders that small capital

 

It's better to make it balanced with our capital in our trading account so we can manage the risks really well and have a good free margin that will hold a temporarily loss.

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Leverage iis useful for trader, if we trade without leverage hence we will need amount money same with contract size, but with leverage we will trade with small margin requirement to open lot size as contract size, and higher leverage will need smallest margin requirement to open one lot size

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Leverage is the amount of money which we do borrow from our broker to increase our margine and it is through this way that more trade can be handle and it is what that every trader need.

Leverage is just like loan to traders the more you leverage the higher your margine

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Just by looking at tray22's post we can see what is the real deal about this leverage, it is a loan from broker to use. Use it wisely and you may afford bigger profit with small capital but if you're unwise you will set demise to your account in faster pace. I don't recommend any traders to overleveraging their account.

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  • 3 weeks later...

It's better to make it balanced with our capital in our trading account so we can manage the risks really well and have a good free margin that will hold a temporarily loss.

 

because I was trading with small capital then I prefer trading using high leverage it will benefit us. therefore, we need to use leverage well. For that, we need to be able to always use the MM and RM is better if you choose to trade with high leverage because leverage is high, the risk is very high

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Leverage is a must, even traders with bigger capital still use leverage, but the difference maybe their leverage is relatively smaller rather than traders with small capital which need bigger leverage in order to order bigger lot size so they can make profit out from it. Leverage is important but some people sometimes misunderstanding about it.

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If forex trading without leverage, maybe rarely retail trader can take part in forex business, and now one advantage forex is many broker offer high leverage until 1:1000 or higher leverage, but choose leverage also need to understand because use high leverage also like as use double edge of swords, we need carefully and wisely using free margin

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Leverage is a must, even traders with bigger capital still use leverage, but the difference maybe their leverage is relatively smaller rather than traders with small capital which need bigger leverage in order to order bigger lot size so they can make profit out from it. Leverage is important but some people sometimes misunderstanding about it.

 

The real ECN gives a small leverage for traders since they're working with client and not a dealing desk. We can identify the real ECN one with a market maker (dealing desk) one with these differences.

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The real ECN gives a small leverage for traders since they're working with client and not a dealing desk. We can identify the real ECN one with a market maker (dealing desk) one with these differences.

So you said indirectly that STP and DMA offer higher spread rate because they are dealing desk? I don't know so far the reason why broker offers high or low, but if that is very high spread i agree with you because i never see any broker that could borrow that much money to us. ECN basically lack of flexibility but in terms of reliability you can put your trust on it.

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  • 3 weeks later...

Leverage is an instrument which will help us trade although we jsut use small amount. We need to know how leverage works. ANd we also understand higher leverage,it means risk willbe higher too if we can not be discipline when trading

Better use leverage wisely and always trade with safe trading because if we take high risk using high leverage hence it will possible to get margin call quickly, might we can use high leverage but also we must keep disipline with risk management especially, because high leverage can boosting profit and also the risk, and high leverage like as double edge of swords we need carefully to use our free margin
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Leverage is an instrument which will help us trade although we jsut use small amount. We need to know how leverage works. ANd we also understand higher leverage,it means risk willbe higher too if we can not be discipline when trading

 

The bigger your leverage is, the bigger risks you will face when you open a trading order. So we need to consider this before choosing the leverage for our trading account.

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The bigger your leverage is, the bigger risks you will face when you open a trading order. So we need to consider this before choosing the leverage for our trading account.

As trader also need to using leverage and free margin wisely, don't become greedy because often greediness in trading only making trader being loss, and already so many trader that proven if they trade with greedy usually will facing margin call account quickly, and although using high leverage as trader must pay attention with the risk that involved in trading
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Indeed, i find out many of them especially new traders cannot be wise when use their margin. This indication that we still need further education of how to use margin and leverage in the wise manner. Leverage should be helpful but this thing shouldn't be abused by us because you need to pay for the price of not using it wisely.

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Indeed, i find out many of them especially new traders cannot be wise when use their margin. This indication that we still need further education of how to use margin and leverage in the wise manner. Leverage should be helpful but this thing shouldn't be abused by us because you need to pay for the price of not using it wisely.

 

Well, it's all about on how they can manage and make a good decision to their order opening. Measuring the trading volume with the risk (stop loss levels) that is still save for their funds on their account.

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Well, it's all about on how they can manage and make a good decision to their order opening. Measuring the trading volume with the risk (stop loss levels) that is still save for their funds on their account.

I prefer to say that leverage is helpful tools, helping us to achieve what we cannot achieve. Margin on the other hand is something which is related to leverage, that is what help us to know how much money we could use before we running out and losing our account. As long as you okay with it you can use extra high leverage which is not recommended at all.

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I prefer to say that leverage is helpful tools, helping us to achieve what we cannot achieve. Margin on the other hand is something which is related to leverage, that is what help us to know how much money we could use before we running out and losing our account. As long as you okay with it you can use extra high leverage which is not recommended at all.

 

It measures your reward and risk levels. Better to consider it before you deposit your money on the trading account. It's good for your MM

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Well, it's all about on how they can manage and make a good decision to their order opening. Measuring the trading volume with the risk (stop loss levels) that is still save for their funds on their account.

Although using high leverage I think as long as we always keep discipline with risk management, which we always measure how much risk that will able to bear in single transaction hence high leverage also help us to learning, because high leverage useful for retail trader which usually start with small capital

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I couldn't agree more with you radex78, many traders think that higher leverage is bad but in fact that is not because it is so much helpful especially to new one, but still remember that i mean is higher not over leverage. Higher leverage of course according to me is like 1:200 or 1:500 but over leverage is like 1:1000 or 1:2000. One of the best feature offered by broker since modern fx trading.

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I couldn't agree more with you radex78, many traders think that higher leverage is bad but in fact that is not because it is so much helpful especially to new one, but still remember that i mean is higher not over leverage. Higher leverage of course according to me is like 1:200 or 1:500 but over leverage is like 1:1000 or 1:2000. One of the best feature offered by broker since modern fx trading.

 

Well, it depends on how you could manage the risks. Especially, most traders were trading with huge trading volume because of their high leverage.

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I don't think that leverage isn't useful and handy for the trader. Leverage in trading in fact is one of the most useful feature ever used by traders to trade. Huge trading profit with smaller capital means that trader use higher leverage. This is much helpful because most newcomers don't even have much capital to pull from their pocket with no leverage.

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  • 3 weeks later...

I don't think that leverage isn't useful and handy for the trader. Leverage in trading in fact is one of the most useful feature ever used by traders to trade. Huge trading profit with smaller capital means that trader use higher leverage. This is much helpful because most newcomers don't even have much capital to pull from their pocket with no leverage.

AS we know that leverage will help us when trading using small amount. But we need to use leverage as well as possible. It's a double edge sword.Be discipline and be wise

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