How does Leverage and Volume affect trades?

Sarah12

Newbie
Aug 12, 2015
29
3
2
Trading/practicing on demo account wouldn't necessarily require the attention of how leverage and volume affect trades,this attention comes into reality when you go live,but then my question is how do leverage and volume affect trades?
 
And this is the reason why most people make millions on demo account, that you can open again and again anytime you want. While you approach real trading you are usually limited with your funds and cannot allow yourself to such big risks.
High leverage is the main reason most forex traders losing their account so quickly. Leverage is an advantage, but should be used wisely and carefully.
 

fxapex

Active Trader
Jun 7, 2013
258
13
29
Higher leverage allows you to open bigger positions with less margin.

Higher volume results in bigger profit/loss per price movement.

Leverages are very luring, and thats the reason why most of the people use it without analyzing the risk it involves, specially the newbies.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Trading leverage is one of the most important trading feature for retail traders. By the way, traders need to select this trading feature according to the requirements of their trading strategies.
 

Onanak

Trader
Feb 5, 2019
60
2
24
47
Before you use leverage, be sure that your trading strategy can be profitable and make continuous profits. As leverage increases profits, it is also increasing loses when trading is with loss. So, be very careful what level of leverage you will use
 

Adam Jackson

Trader
Jun 15, 2019
68
5
9
29
Traders can feel the importance of working with leverage since leverage extends the investment capacity of each trader. There is no surprising fact that each trader may have some need of emergency money which he can channel through levered money. Yes, when it is the matter of deciding which alternative is best: working with leverage or without leverage in that situation it will solely reliant on the trading styles adopted by a trader.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Traders can feel the importance of working with leverage since leverage extends the investment capacity of each trader. There is no surprising fact that each trader may have some need of emergency money which he can channel through levered money. Yes, when it is the matter of deciding which alternative is best: working with leverage or without leverage in that situation it will solely reliant on the trading styles adopted by a trader.

Nice to see your point of view on the trading leverage! By the way; what’s your recommendation to the retail traders on trading leverage?
 

AndyLang

Newbie
Jun 21, 2019
4
0
2
34
Which leverage and volume are the best for a new trader? I am a new Forex trader and I see most brokers offer 1:100-1:500 leverages, also lot size 0.01 as minimal. Please recommend me and explain suitable leverage and volume trading.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Which leverage and volume are the best for a new trader? I am a new Forex trader and I see most brokers offer 1:100-1:500 leverages, also lot size 0.01 as minimal. Please recommend me and explain suitable leverage and volume trading.

Not more than 1:50! I think, 1:100 is relatively high; but your trading strategy provides you an impressive success ratio then you can go with 1:100!