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.
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leverage like a double-edged sword. Depending on how you use it.
leverage like a double-edged sword. Depending on how you use it.
I was wondering if it would be okay to use a leverage of 1:400. Is there any downside to that?leverage like a double-edged sword. Depending on how you use it.
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
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.
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.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.
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.