Leverage and spread

[Karley Walker]

Leverage and spread play a major role in trading. Even though these two are different things, but these both essential to be minimized to get a better return from trading. High leverage can lengthen the profit level and you have to bear in mind that high leverage can also increase your loss level the way it increases the profit level. So, use them cautiously.

 

[Faal]

leverage is really important financial tool which an investor should consider when choosing a broker.

 

[Alexander Hudson]

Leverage is a facility that enables a trader to take more risk beyond the ratio of his capital. The higher the leverage amount is, the higher the risk is. On the other hand, spread lies between the ask and bid price referring to commission. Low trading spread is always desired.

 

[Karley Walker]

If you ask me to name two important aspects of trading, I must name one is leverage and another is spread. Leverage is loan and spread is a commission. Both are essential factors in risk management strategy. The higher the leverage is, the higher the risk is and that’s why many traders avoid using high leverage.

 

[FXOpen Trader]

If you ask me to name two important aspects of trading, I must name one is leverage and another is spread. Leverage is loan and spread is a commission. Both are essential factors in risk management strategy. The higher the leverage is, the higher the risk is and that’s why many traders avoid using high leverage.

We need to make use of the Lower leverage settings for getting the best trading based results.

 

[helodear123]

We can adjust the leverage at later times as well so when we start as a new trader it is always advised to keep the leverage low coz the market conditions are not known.

 

[Flabbergast]

Leverage can be defined as the amount of money which you have to put in for each trade you make. Spread is the difference between the buy and sell price of a currency pair. In Forex trading,the spread is always set by the market makers.

 

[Oscar Shumack]

Financial news plays a vital role in Forex trading market and so most of the Forex traders wait for any news to be held. During the time of news occurring, the market becomes volatile and traders want to take this advantage. It leaves an opportunity for traders to make a quick buck. But, it’s not easy to make money in Forex by news trading!

 

[Nayek Pichai]

To be very honest, making constant money on average is possible when a trader well understands the market flow (supply/demand math|) and catch the right trend. If you don’t know whether it is uptrend or downtrend, how will you forecast the market flow? So, it’s essential for constant money making.

 

[Andrew McCalam]

leverage and spreads are important financial tool which an investor should consider when choosing broker .

 

[SaadBinToha]

Leverage & spread both are directly connected to your broker! Broker plays the role as an intermediary and so, always try to select a regulated trading broker. Regulation gets the most priority than leverage and other related facts. An unregulated broker is a curse to a trader’s life. A regulated broker always customer-focused and ensures the best facilities.

 

[Eduardo Lucchese]

Don’t use high trading leverage in your trading! You can’t deny the importance of a Forex broker because they serve traders in different ways working as an intermediary. Brokers are classified into three categories including ECN, STP, and market maker. We are always in favor of ECN brokers.

 

[adamartin]

I like my spreads and leverage to be low. Using 100X leverage and getting an average spread of 0.2pips with fxview. I know many traders look for high leverage but seriously the thought of incurring a high loss never let me try high leverage. Also, I am satisfied with small but consistent profits I am making.

 

[FXOpen Trader]

I like my spreads and leverage to be low. Using 100X leverage and getting an average spread of 0.2pips with fxview. I know many traders look for high leverage but seriously the thought of incurring a high loss never let me try high leverage. Also, I am satisfied with small but consistent profits I am making.

We must make use of the Lower leverages while doing our trades into the markets.

 

[adamartin]

We must make use of the Lower leverages while doing our trades into the markets.

Agreed! At least in the beginning it’s better to use low leverage. As you gain experience overtime you can slowly increase your leverage.

 

[FXOpen Trader]

Agreed! At least in the beginning it’s better to use low leverage. As you gain experience overtime you can slowly increase your leverage.

We must try to make use of the Lower leverages in doing our trades into the markets.

 

[Faal]

spreads is really important when choosing a broker , and this is a best source for scalpers to bring profit very rapidly.

 

[Pedological]

For scalping traders, spread and leverage is matter in trading, scalping traders usually prefer to trade trading pairs with low spread and high volatility, for this aim most traders choose EURUSD, this good trading pair for scalping, has a low spread or even zero spread and high volatility, which means trade can catch profit shorter time, but likewise loss too.

Scalpers aim at making profits from slight fluctuations in the market and use leverage to enhance the profits. It is also important to trade currency pairs that offer tight spreads. EUR/USD is the best currency pair for scalping but traders can also prefer using other major pairs.

 

[Flotsamm]

Since lower trading costs is my top priority, I prefer low spread brokers only and don't care much about high leverage. So far I’ve been really happy with turnkeyforex for that matter. However, I never stop exploring and researching about different brokers because as a trader I am more focussed on finding suitable conditions instead of staying loyal to any one broker.

 

[Faal]

that is really a fine reply with good information , thanks for nice post.