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what you think about high leverage ?

Discussion in 'Forex' started by Joy Bahadur, Nov 29, 2016.

  1. Joy Bahadur

    Joy Bahadur Registered

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    According to my trading experience, I dont consider high leverage as any risk, if there is any risk, it is completely with non-sense planning or zero risk management, nothing to do with high leverage. In my trading career, for avoiding risk I always like to trade in 1:100 leverage, in spite of having up to leverage 1:400 that always make sure my trading broker MXTrade. But, in my demo trading I took high leverage to see the performance how it works.
     
  2. Osman Hazrat

    Osman Hazrat Registered

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    In fx trading when choosing a broker there are many important things that you have to check. From all leverage is an most important financial element which an investor should consider when choosing a broker. I always like to trade with high leverage for making profit rapidly. Thats why I am with CIB FX due to it high leverage 1:500 which is very supportive to trade in a high lot in spite of small balance. So, my trading life is very much profitable.
     
  3. Tanzil Al Banna

    Tanzil Al Banna Registered

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    First of all we the traders have to make sure the proper risk management policy before trading with high leverage. Otherwise you can fall a great loss when trading practically including high leverage. My trading platform TradingBanks for all time make sure up to leverage 1:400 , but for avoiding risk I always use 1:100 leverage. But in my demo trading I took high leverage to see the performance how it works.
     
  4. L Moore

    L Moore Registered

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    The leverage is an important financial tool which an investor should consider when choosing a broker, practically it allows an investor to grow his market exposure to a level that exceeds the initial investments. My trading career I always like to trade in a small leverage for avoiding loss in spite of having up to leverage 1:500 leverage that always ensures my trading platform LQDFX. But in my demo trading I took high leverage to see the performance how it works.
     
  5. Diaz

    Diaz Registered

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    High leverage is useful for trader who use small amount for trading, but high leverage also mean high risk. There are many broker who provide high leverage, one of them is fbs. I think, it's like broker lead us to high risk because they provide high leverage for trading.
     
  6. Joe Hoover

    Joe Hoover Registered

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    While selecting a broker, a forex trader should overview many important factors like spread, leverage, trade execution facility, etc. It is not surprising if a micro trader demands high leverage from his broker since with the use of leverage he can actually maximize his investable funds by borrowing money from his broker. But without managing funds properly high leverage can possess greater credit risk. So I favor moderate leverage which can be managed advantageously.
     
  7. HermanFxTrader

    HermanFxTrader Registered

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    I think it helps small time traders. But of course they must be really cautious because as they say, it's a double-edged sword. Either it makes you, or breaks you. I've traded with Alpari, InstaForex, and JustForex before. All three were offering high leverage. But I had issues with them in terms of withdrawal so I left.
     
  8. Famery

    Famery Registered

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    I guess the dangerous part here is, if you're using 10:1 leverage, after opening 1 trade as per above, you will "only" now have a free margin of ~ $117. But using 200:1 leverage, you will still have a free margin of ~ $244. And because of this, the temptation to open up more trades is higher since your free margin is higher. And of course, more open trades means more risk.
     
  9. moneybaggy

    moneybaggy Registered

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    Even though Forexchief offers up to 1:400 leverage, I prefer 1:100 at most. This is part of my risk management system. Don't take more than you can handle.
     
  10. nathanigran

    nathanigran Registered

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    I trade with1:500 alot because I had low capital. I think the leverage you use depend on what capital you have. It does increase your risk, but if you know what you are doing, you can make it work in your favor.
     
  11. WaynDavid

    WaynDavid Registered

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    This is true, when capital is low high leverage is encouraged to boost you trades. But we should always remember that leverage is a double-edge sword, if we are not careful we might lose so much, let's just try and get our strategy right and hope for the best.
     
  12. bluemac

    bluemac Registered

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    New traders being unaware of the market conditions should keep the leverage low otherwise high levearge can claim higher losses too.
     
  13. WaynDavid

    WaynDavid Registered

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    Exactly, the higher the leverage the higher the loses, but many pray things go well. I think this is the reason why many still use high leverage to trade, with the hope that it will come out good.
     
  14. moneybaggy

    moneybaggy Registered

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    Honestly, if you know what you doing using high leverage wouldn't be a problem. I say this because we can really use the help leverages give us, so we won't be deterred by fear, after all the market is about risk.
     
  15. WaynDavid

    WaynDavid Registered

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    Doesn't this mean taking too much risk, am just saying because it sounds like pushing ahead blindly without weighing the options carefully.
     
  16. moneybaggy

    moneybaggy Registered

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    Don't think so, if you are sure about what you are doing then why not go for it. I mean it can definitely help boost your trades.
     
  17. WaynDavid

    WaynDavid Registered

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    I know it can, and so can it help reduce your funds if you are not careful enough. My point is we should always have the realism that leverages can be good or bad, knowing this will help keep you in check.
     
  18. moneybaggy

    moneybaggy Registered

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    But this doesn't mean we will not use leverages, we can't be negative all the time as the market is about risk taking and for sure leverage usage is one of those risk.
     
  19. Pipster

    Pipster Partner Registered

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    The market is about risk taking, but trading profitably is about proper risk management and making educated decisions (following a good trading plan).
    Leverage helps in making bigger orders, but that's not necessarily a good thing. Not always.
     
  20. Viktory

    Viktory Registered

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    Even with the risk attached to using leverages, this shouldn't deter us from using leverage as it can also boost our trades. The market is definitely about risk taking.
     
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