Leaverage in Forex

lucacrebbe

Active Trader
Jun 26, 2017
108
1
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Hello, can you help me please with this question?


I see that forex dayily movements are not so deep (for example Eur/usd today is
1,2311 -0,0027 -0,22% )

-0,22%

I think that using the leaverage x10 or x100 should not be so danger, because there are no danger swings in forex

I mean today is -0,22%

If I went long in the morning with a a stake of 1000$ and a x100 leaverage (moving a position of 100'000) I would have still not liquidate my position (because it's down of -0,22% and not -1%)

BUT, In case the trade would have gone in my direction (long) I would have make some decent profit

+0,22% of 100'000


So, is it really dangerous to use leaverage in Forex?
 

Enivid

Administrator
Staff member
Nov 30, 2008
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Odesa
www.earnforex.com
because there are no danger swings in forex

There are.

So, is it really dangerous to use leaverage in Forex?

No, if you size your positions in according with a prudent risk management strategy. Yes, if you just buy and sell the most you can and keep trading without stop-loss.