The Importance of Leverage in Forex Trading

[Angelic]

that is why the NFA really concern about the safety of trading rather than speculating, under their regulation broker should obey the use of 1:50 as maximum leverage, i think this leverage are realistic to keep traders away from speculating his own capital using high risk volume of trades

Thats will be nice as such body must have intervened. But some brokers might still accept that. However. the leverage should not be used rather more money should be added due to I see the leverage as a trap to my self.

 

[tray]

Leverage is sometime very good but the problem here is that we dont have to use too high leverage which to me i think its not good we need to use minimize leverage just to be on the safer side

 

[Cutiekc]

Leverage is sometime very good but the problem here is that we dont have to use too high leverage which to me i think its not good we need to use minimize leverage just to be on the safer side

Yes I agree with you that leverage are good but only bad when its been used too much. Leverage actually increase the earning potentials of a forex trader. Lets say that one who have 20 dollars investment with the help of leverage can have a lot size of that of the same person trading with 20,000 dollars but then, one using such higher leverage are prone to risk.

 

[barood4money]

Every prospect has its own positive and negative sides. Positive side of using the leverage facility is it increases the chances of earning huge profits. And the negative point is one little mistake can make you huge suffer.

 

[Daisy]

I also like leveraging as it helps me earn more profit. I don't like to use my real money and I don't mind margin call on small leverage at all as long as I have a chance to trade. Leverage is the best part about forex since its hard to get that kind of leverage without having good credit or a job in real life for most other things. Its nice to get a bmw for some leverage but you have to have a job and then good credit in order to finance it and do it well.

 

[gkintl]

Leverage is a double-edged sword. It will increase the profit and loss exponentially. So, wise use of leverage is always called for. Professionals suggest a leverage of not more than 1:100. Also, it is advisable to use only 1/4th of the capital per trade and no more than that. High leverage causes anxiety in the mind of a trader which ultimately results in wrong decisions.

 

[Angelic]

Leverage is a double-edged sword. It will increase the profit and loss exponentially. So, wise use of leverage is always called for. Professionals suggest a leverage of not more than 1:100. Also, it is advisable to use only 1/4th of the capital per trade and no more than that. High leverage causes anxiety in the mind of a trader which ultimately results in wrong decisions.

Yup, the leverage is a double edge sword but then it is for the brave hearted and those who have the knowledge. It will be jeopardising to some people who does not have the knowledge and people who does not know how to use it to his or her advantages and more especially the greedy ones will mis use it.

 

[tray]

Leverage have some kind of important its help us to make good money by allowing us to enter the market on time and get what you actually want on time as well and this is just the best part of the game

 

[barood4money]

Well, i always use leverage. It helps me to earn more profits with small investments. But leverage should be use wisely. Your analyse should be perfect otherwise you can face a huge loss.

 

[tray]

There are so many importance of forex trading leverag so we dont really need to misunderstood our self the major thing here is that a good trader who actually want to trade must always focus on learning and getting practice within a short period of time.
Leverage help increase our trading margine

 

[Daisy]

One nice thing about forex is leverage since anyone can get it easily. In the real world, in order to get any kind of leverage you must have a job and good credit in order to get some leverage but its low too so its not like you will get it every time you want it and it might be a one time thing so I think we can all take advantage of this if we're good at forex to improve our capital size. I use low to modest amount and up to 500 but no more than that to avoid large losses.

 

[Pettyeve]

Leverage is why we can be able to trade with small capital. With a leverage, any body can trade with the amount of money he or she is having.Leverage is good because it makes the trader to trade with small capital.

 

[rexway]

leverage is very helpful its a good way which we can trade in forex and get the best as well its your leverage that allow you to step into the trading environment and be sure you enter the market which your margine didn't carry

 

[Cutiekc]

leverage is very helpful its a good way which we can trade in forex and get the best as well its your leverage that allow you to step into the trading environment and be sure you enter the market which your margine didn't carry

No doubt leverage is good when trading but then when been abused in the sesne that you are making excessive use of it, that way you will get loss than your profits. On the other hand leverag e sgould be used by more experienced traders.

 

[kasual]

Leverage help traders to trade with high lot size though actually they are have small capital in trading account. Leverage is part of small contract system which give traders loan to trade with standard contract. If traders choose to use 1:100 leverage ratio, mean traders trade with $100 value per $1 capital.

 

[tray]

Leverage have a huge importance when a trader dose not have good money on his pocket to trade and that is what I think because even when I try fixed the problem of high leverage in my account I do run into loss which is not good at all

 

[Decub]

Sometimes I really think Forex would have been difficult for traders to trade in. I mean poor traders to earn well from Forex if not for the leverage system. It is like a system that gives poor traders a chance to belong to the Forex trading community or be called Forex traders.

 

[Pettyeve]

The newbie traders should be able to understand that the leverage is good and it is bad. When they really making a choice of the leverage they want to use, they should be able to choose a small leverage to avoid blowing their trading account very easily. Leverage is not to be seen from profit only because it will be bad to lose if you choose a high leverage.

 

[TenkoFX]

leverange very important. leverange can show us how we set the number of commercial transactions and balances that we have. here we should be able to choose the appropriate leverange trade with capital that we use, and trade strategy we will use.

 

[budado]

Just use 1:100 leverage. For me this is the most stable leverage. Not too high and not too low. I do believe that I can master enough trading skills to make me a big time trader. I do know that I can handle my trading account if I only know how to use leverage properly.