Forex trading with leverage

Discussion in 'General Forex Discussion' started by Rambo35, May 5, 2014.

  1. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    For all of us who are trading forex it is important to understand what leverage is and how it can perform for us during the trading process. One of the biggest reasons why the forex market is exciting and accessible to small retail traders is because of the industry’s high leverage options.
     
  2. fxapex

    fxapex Active Trader

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    But its better that for using high leverages you should be a good trader, so that in the end you might not end up in negative. a trader should know how to utilize the leverage at its maximum.
     
  3. Exness Support

    Exness Support Active Trader

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    I would rather say leverage is a double edged sword which can work for you also against you. High leverage is often reason for margin calls for traders. So I would advice use your leverage wisely and always keep in mind it can work for you as well as against you.
     
  4. vicknic

    vicknic Confirmed ProfiForex Representative

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    Leverage is one of the best part of Forex. Without this, it would be very difficult for the common man to get involved in this business. The question of how bad or good it is to use high leverage is troubling. What I can say is that we have different style of trading. Irrespective of our different strategies, one who uses high leverage without a working strategy is heading for great Loss. Therefore, before you use high leverage, you must weigh your profit and Loss ratio. If you are very sure of your strategy on a particular deal, then use high leverage to grab as many pips as you can. This should not be done all the time. Only when your prediction is 80% accurate.
     
  5. FredricJones1

    FredricJones1 Confirmed Integerfx Representative

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    Hi,

    I too completely agree with your comment about leverage in Forex trading, the best leverage in Forex trading is 1:100 or 1:200. Always the new traders should go for Small leverage because that is the best option, after getting good knowledge and experience in Forex trading, its best to use big leverage like 1:500 or more. But any how the safe side is using small leverage.
     
  6. Rockefeller

    Rockefeller Master Trader

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    If you manage your risks then actually it does not matter what leverage you are using.
     
  7. shl2412

    shl2412 Banned

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    In my opinion a newbie trader should use high leverage ,it is very suitable for trading ,and it can stop to you ,use high volume lot and senior traders can use low leverage because they have much practice in forex trading .
     
  8. Fxpipper

    Fxpipper Master Trader

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    I have to disagree with the last post, new traders are advised to stick with low or med leverage. As others have pointed out, a high leverage is a double edged sword and if you end up making a loss, thanks to the high leverage, it might result in wiping out your account..
     
  9. triplet

    triplet Active Trader

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    In forex any trader has the asses to the use of leverage but not all trader make proper use of leverage and some have loss so much money due to improper use of leverage. The use of leverage can be risky that caution should be applied .
     
  10. Steve Lock

    Steve Lock Active Trader

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    In other ways, do you need hard stops, if you use a low leverage?
     
  11. duxingxia

    duxingxia Trader

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    A professional trader should make full use of leverage, it's a double-edged sword, we should select suitable leverage according to the deposit and trading strategy.
     
  12. joescholz

    joescholz Banned

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    Leverage is the best thing that can happen to a trader and can also be their worst night mare if the trade goes wrong; if you are sure of your trading strategy, you can make the most of the leverage allowance on your broker platform. I normally us large leverages on my swing trades; though I try to maintain a limit of just 1:50 despite the fact that maximum limit on the Platform, Profitforex is !:500. This is to help keep my losses in check in case the market swings to the opposite direction.
     
  13. duxingxia

    duxingxia Trader

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    Leverage should be depend on individuals, higher leverage will lead to higher profit, but the risk will also increase. For new ones, it's better to try low leverage to learn and avoide risk. If you are confident about the market trend with rich experience, maybe you can try higher leverage.
     
  14. fxapex

    fxapex Active Trader

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    Yes a trader should not think that higher leverage is profitable, he should look on the other side too, it can a matter of huge loss too.
     
  15. Fxpipper

    Fxpipper Master Trader

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    The optimal leverage for newbies should be 1:50 or at most, 1:100 - no more..
     

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