Basic understanding of Leverage

[kxforexmart]

As a trader we have to understand the basic of leverage ratios so that we can trade with a particular money management to get rid of the margin call ,for that we have to be very much experienced with the basic knowledge related to the Forex field.

 

[Nezami]

I have seen according to my trading experience that we the traders in particularly the newcomers fall a great loss by taking high leverage. So, I think, before trading with high leverage, we have to gather risk management policy which is very supportive to reduce loss wit certainly. Actually, leverage and spreads are important financial tool to choose a trading broker.

 

[Fx Master]

Leverage is an important financial tool which an investor should consider when choosing a broker. Actually it allows an investor to grow his market exposure to a level that exceeds the initial investment. By and large traders in particularly the newcomers fall a great loss by taking high leverage due to non-sense planning. So, before trading with high leverage we have to know how to manage.

 

[Bob James]

Being able to trade on margin is what makes Forex trading possible. Imagine if we had to put down $10,000 (1 Lot) each time we wanted to trade. Hardly any retail trader could afford that.

 

[Andrew McCalam]

By and large traders think, only high leverage can bring profit very rapidly. But practically that’s not possible at all without proper risk management policy. On the other hand, mostly consider high leverage at many risks, but according to my trading experience I don’t consider high leverage at all, if there is any risk, it is completely with non-sense planning and zero risk management policy, nothing to do with high leverage at all.

 

[Fx Master]

According to my trading experience, I think, leverage is important financial element that allows an investor to grow his market exposure to a level that exceeds the initial investment. And initial deposit really depends on our financial and trading capability that we have.

 

[Lee Mark]

The leverage is an important financial tool which an investor should consider when choosing a broker, actually leverage can brings profit very rapidly if you have proper risk management, and without any risk management approach you can fall a great loss when trading practically. So, before trading with leverage web have to know how to manage risk.

 

[The trader]

From all trading elements leverage is a fact that always contains. So, before trading with leverage it is important to make sure proper risk management approach, otherwise you can fall a great loss when trading with leverage. Actually leverage allows an investor to grow his market exposure to a level that exceeds the initial investments.

 

[Glenn Phillips]

In my trading career I always like to trade with small leverage for avoiding risk , but when I can predict the real faction of this market with certainly, then I use high leverage for making profit very rapidly. Actually leverage is an important financial tool that allows an investor to grow his market exposure to a level that exceeds the initial investments.

 

[Fardin Alex]

Basically, The leverage is an important financial tool which always contains risk, for that reason in my trading career from my first day of trading I have been using demo account where I use leverage first of all to see the performance how it works. Then I move live trading. This approach always helps me for avoiding risk.

 

[Fx Master]

Generally we the newcomers try to make money very rapidly by using high leverage and fall a great loss when trading practically without any trading plan as well risk management policy , so before trading with high leverage it is obviously important how to manage risk in forex trading.

 

[The trader]

Mostly traders consider high leverage at much risk , but in order to my trading experience I am not willing to consider high leverage at any risk , if there is any risk it is completely with non-sense planning and zero risk management policy , nothing to do with high leverage at all.

 

[arjun]

Leverage can be helpful but i think it can be dangerous for new traders as they are not aware of the market conditions so i think that we should keep this leverage low in start.

 

[kxforexmart]

yes each and every traders have to trade with proper leverage ratios because that can decide how we are dealing with the trading account by proper usage of lot size also.

 

[Faal]

Trading leverage is very useful feature for me; for the reason that my trading equity is below 1K. So I can’t use standard trading lots size so directly! By the way, I use the facility of high trading leverage so carefully, because I know it’s dangerous to use high leverage without enough study on Forex market.

 

[Larry Scott]

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[Max Trade]

Leverage is an important financial tool which an investor should consider when choosing a broker, it allows an investor to grow his market exposure to a level that exceeds the initial investments. If you want to make profit very rapidly by using high leverage first of all you have to make sure real risk managing plan , otherwise you can fall a great loss despite of sufficient trading balance.

 

[berthastokes]

Leverage is imparted as an extent and relies upon the edge necessities constrained by your broker. For example, if your broker anticipates that you will keep up a base 2% edge in your account, this infers you ought to have no under 2% of the total estimation of an arranged trade open as trade out your account, before you can proceed with the demand. Imparted as an extent, 2% edge is equivalent to a 50:1 leverage extent (1 parceled by 50 = 0.02 or 2%). For my trading I utilize 400:1 at Lx Markets however the broker gives 500:1 leverage. I additionally make the most of their low spreads.

 

[Faal]

Well, I see that most newbies who are coming into forex trading are now relying on the using of leverage in other to make more more regardless the initial amount they used. Well, it is quite true but using leverage give the chances of making more money but then it makes our position more prone to lose and lose is more quicker.

You are right! A number on new Forex traders have a tendency to rely leverage facility, they basically try to make huge income within very short period of time! That is wrong mindset; success, it takes time to execute.

 

[Nezami]

Leverage is simply the credit offered by the broker to trade higher volume. Leverage is a double edge sword. It can result in huge profit or substantial loss. it allows an investor to grow his market exposure to a level that exceeds the initial investments. It always surrounds risks , so it is more appropriate to acquire proper risk management approach before using it.