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Leverage

Leverage can make you profitable, but first of all you have to ensure sufficient trading balance real risk managing plan. Otherwise you can be a loser by using leverage.
 
Really, leverage makes forex trading a very rewarding activity, such that you can earn fantastic income from the forex market within a very short time with comparatively little capital. But it is like a double edge sword that can work for you as well as against you. so, I always sincere about using leverage.
 
I have seen so many forex trader always consider high leverage at risk , but I don’t consider it at all. if there is any risk it is completely with non-sense planning and zero risk managing plan , nothing to do with high leverage at all.
 
In Fx trading , by and large traders in particularly the newcomers fall a great loss by taking high leverage due to non sense planning and zero risk management policy, nothing to do with high leverage at all. so, I think, before trading with high leverage we have to know how to manage risk.
 
in order to our trading understanding generally traders choose their leverage ratio , beginners always try to make money rapidly by using leverage but ultimately become loser when trading in practical , making money from leverage is a great skill and need also a exact trading plan, for that need a long term experience.
 
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.
 
Leverage is very important for retail traders. It increases our buying power. We can trade with inconsequential capital with the help of leverage. The lead is whether you take high leverage by then reducing the hazard % proportionately. In any case, I figure trader should focus on quality trading. Also, for that perceiving and contorted is basic.
 
Using high leverage is like as use double edge of swords, if trader having tendencies to become greedy, hence usually will end with failure, so will better if use leverage wisely and not to become over trading, many expert trader suggest to use low leverage for security reason, because with low leverage will need bigger margin requirement to prevent greedy

Basically; greedy traders use high trading leverage; using an aggressive trading leverage isn’t any solution; it’s the most dangerous thing!
 
I don't think leverage increases our risk. It does not affect the pip value in anyway. It only allows you to buy more. However, it does reduce your margin call percentage. Since you are using borrowed money to purchase more, you will have less actual margin to sustain your trades. Remember that the broker cannot allow you lose their money as well.
 
I don't think leverage increases our risk. It does not affect the pip value in anyway. It only allows you to buy more. However, it does reduce your margin call percentage. Since you are using borrowed money to purchase more, you will have less actual margin to sustain your trades. Remember that the broker cannot allow you lose their money as well.

Then what’s your trading leverage for scalping and others short term trading?
 
At a time I used 1:500 when scalping. I did it manually so I had total control and I monitored every step of the way. When I employed a scalper EA, it required only 1:100 at the time.

Please don’t mind; till now you are using such an aggressive trading leverage! What’s your risk ratio when you are using 1:500 leverage?
 
besides money management you also have to make sure most powerful analyzing trading strategies , otherwise good result will not come out at all.
 
It is better to use leverage in the following cases:
1. When you have great statistics. For example, if your real statistics contains 70% of positive transactions, the risk: profit ratio is 5: 1. If these numbers are stable, then you can even increase leverage.

2. When you have a small deposit amount, and you need to increase it.

I used leverage at the beginning. But I opened order if I knew that i would win.
I quickly increased my deposit and stopped using leverage.
 
It is better to use leverage in the following cases:
1. When you have great statistics. For example, if your real statistics contains 70% of positive transactions, the risk: profit ratio is 5: 1. If these numbers are stable, then you can even increase leverage.

2. When you have a small deposit amount, and you need to increase it.

I used leverage at the beginning. But I opened order if I knew that i would win.
I quickly increased my deposit and stopped using leverage.

Basically; traders need to use the risk reward ratio below the 2%! Using high risk reward ratio is costly! And the ultimate result is so dangerous!!
 
leverage can make you loser if you have non sense planning , success on using leverage always depends on mature trading plan in particularly when market moves at random. so be mature on trading and be profitable by leverage.
 
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