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What is leverage?


yogeshwartyagi

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High Leverage of course has consequences. But if we make trades properly and in accordance with the trading rules that would make trading truly be comfortable. Now I like trading with a leverage of 1: 500 in TICKMILL

 

High leverage also has high risk and as a trader we must be able to be wise in using leverage. We can start trading with demo account first to learn how to manage leverage when trading.

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Leverage is double sword in forex. You cannot think that it is a profit increasing tool but it can go against you if you made a trade at wrong time. So you should be very careful while choosing leverage and must minimize the risk before doing trades. 

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Leverage is double sword in forex. You cannot think that it is a profit increasing tool but it can go against you if you made a trade at wrong time. So you should be very careful while choosing leverage and must minimize the risk before doing trades. 

 

It determining your prizes and your risks. You should consider this as well when making your trading account in a broker...

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It determining your prizes and your risks. You should consider this as well when making your trading account in a broker...

It is truly double edged sword @novarisa. The prize from profit is bigger than you ever think but the loss also big enough to ignore. From my own perspective, leverage is useful feature but some people sometimes misunderstand it by give a bad to good view about it. Leverage as some people said will give us chance to grab bigger lot size.

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It is truly double edged sword @novarisa. The prize from profit is bigger than you ever think but the loss also big enough to ignore. From my own perspective, leverage is useful feature but some people sometimes misunderstand it by give a bad to good view about it. Leverage as some people said will give us chance to grab bigger lot size.

Because of it double edged sword, we must try to maximize it as well as possible. We also must know when the right moment to make order if we want to use bigger lot size.

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Yea, leveraging is often a big problem when it is mishandled. A high leverage should only be undertaken when its potential risks to reward ratio is adjudged to be in favor of the rewards for the trader. Otherwise, we may merely be feeding the market with our funds. 

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Leverage is double sword in forex. You cannot think that it is a profit increasing tool but it can go against you if you made a trade at wrong time. So you should be very careful while choosing leverage and must minimize the risk before doing trades. 

INdeed leverage is like as double edge of swords, on one edge will giving benefit to increasing opportunity, but on another edge will harmful account if we can't control decision, many trader they suggested to use low leverage to prevent from greedy in trading because low leverage will required higher free margin requirement to open trades

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