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The Importance of Leverage in Forex Trading

Leverage is actually important in Forex trading. It isn't necessary, but it's still important, because it can help Forex traders to magnify their gains whatever amount of money they have in their trading accounts.

All kinds of businesses use leverage. For example, a new start-up business might not have enough money to employ five new employees, but if the owner really wants or even needs these five employees, the owner will most likely get a business loan from a bank. This is borrowing money and it allows business and Forex traders to increase their potential profits.

Businesses use leverage by borrowing money from banks and such. Forex traders use leverage by borrowing money from brokers. In either scenario, money is being borrowed.

If you don't apply leverage to your trades, then you are ultimately missing out on a lot of potential gains. Businesses might play it safe and not get a bank loan. Forex traders might play it safe and not borrow any money from their brokers. This is fine, but regardless of whether you are a business or a Forex trader, you should really consider applying leverage to your trades.
 
Leverage is important at the same its also risky and not worthy to be use sometime so the best thing for any trader to do is just for him to try his possible best and limit the leverage he use in forex trading lets say for example the best leverage to use should be 1:100

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Leverage is important at the same its also risky and not worthy to be use sometime so the best thing for any trader to do is just for him to try his possible best and limit the leverage he use in forex trading lets say for example the best leverage to use should be 1:100
 
Leverage is among the things that made forex trading very unique because leverage makes one to have chances of making good amount of profits even with small amout of capital,so leverage is good but as well as risky cause the higher the leverage the higher the risk.
 
Leverage has the control of the possible losses and profits in Forex. So, we should definitely have our way to handle or apply the leverage that will be worthy for our trading strategy and with our trading capital. If we fail to do so, we will not achieve our target profits and easily reach MC.
 

nahid

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Leverage is actually important in Forex trading. It isn't necessary, but it's still important.Its very good way to earn but in there also very risk so we should have good knowledge.,so leverage is good but as well as risky cause the higher the leverage the higher the risk.
 
thanks to leverage system because this system, traders could trade and get decent amount of profit even though they have no much capital in deposit account. but leverage is similar with double edge sword where besides give traders advantage, give traders disadvantage too if not use it wisely.
 
leverage is good but as well as risky cause the higher the leverage the higher the risk. Leverage has the control of the possible losses and profits in Forex. So, we should definitely have our way to handle .Leverage is actually important in Forex trading.
 
Leverage is an important tool in the hands of a trader and should be chosen judiciously. We should not chose a very low leverage like 1 ; 2 which would make earning in Forex very slow and boring. Neither we should greedily chose a leverage of 1 : 1000 or above which would render our capital vulnerable. I prefer a leverage of not more than 1 : 100 though rarely I also trade with 1 : 1000 leverage.
 
There are many important terms in Forex market Leverage in one of the.I think leverage is very important because if you tread suitable leverage you will be winner in Forex market.
 
Leverage is very important it made easy trading for low investors. If we have to do 1:1 trading we need a lot of amount to invest in our trading account .Forex support me with leverage , I start it with my saving now I had a good amount as . capital . Leverage make forex popular for all people who want to start their own business.
 
Leverage isn't meaningful to me since I don't need to open simultaneously many positions. I used to but I've just change my plan and now 2 positions are maximum, one for main prediction and one for covering losses if I'm wrong.
 
Too huge leverage is bad for success, too short of leverage more danger for us...
The best leverage is depend on amount of our balance...
 
Leverage isn't meaningful to me since I don't need to open simultaneously many positions. I used to but I've just change my plan and now 2 positions are maximum, one for main prediction and one for covering losses if I'm wrong.
It's part of the strategy to have consider the leverage as other traders are making good profits by making simultaneous trades which has the same relationships like in the pairs. Which others can also take advantage of the more margin so, they will not easily have MC.
 
Leverage is important at the same its also risky and not worthy to be use sometime so the best thing for any trader to do is just for him to try his possible best and limit the leverage he use in forex trading lets say for example the best leverage to use should be 1:100

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Leverage is important at the same its also risky and not worthy to be use sometime so the best thing for any trader to do is just for him to try his possible best and limit the leverage he use in forex trading lets say for example the best leverage to use should be 1:100

i'm sorry if i'm wrong but in my opinion leverage is not same as borrowing money from brokers or banks... it is more like contract between clients and brokers about minimum conditions use of money to buy some contract size of trading... for instance 1:1000 which mean you can buy contract $1000 value just for using $1 margin and get benefit from price movement which can make him unlimited profit as much pips as contract value but also can get risk 100% of money invested as the equity fall bellow the negative positions
 
leverage give traders ability to buy contract size with using margin only, common trading activity usually using no leverage, trading in forex market have to buy curencies in lot size, standart for 1 lot is 100,000 so if no leverage used than only big boys with huge money can trade forex
 
leverage give traders ability to buy contract size with using margin only, common trading activity usually using no leverage, trading in forex market have to buy curencies in lot size, standart for 1 lot is 100,000 so if no leverage used than only big boys with huge money can trade forex

Well I agree to you with what leverage works for but then it is never a must to trade with leverage. At most times trading with leverage is often greed and at the other hand it makes our positions or deals more prone to lose in such a way that a positions with much levverage stands a chance to go negative too quik if the market moves a bit backward.
 
Well I agree to you with what leverage works for but then it is never a must to trade with leverage. At most times trading with leverage is often greed and at the other hand it makes our positions or deals more prone to lose in such a way that a positions with much levverage stands a chance to go negative too quik if the market moves a bit backward.

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
 
Leverage is very good its help the traders to gain their desire amount of money which they are in need of to trade and also they do increase margine as well
 

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