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The Importance of Leverage in Forex Trading

Nowadays, retail Forex traders are available here and there! Know why? Because of availability of trading leverage! I am sure, trading leverage is one of the main reason of making Forex trading such a popular business! Yes, I like to use high trading leverage in my live account, right now I am working with 1:500 trading leverage!
 
From all trading instruments leverage is mainly considered as an important financial tool which an investor should consider when choosing a broker. Actually leverage allows an investor to grow his market exposure to a level that exceeds the initial investments. Actually any kinds of leverage always contains risks.

Without leverage the forex market would lose it's charm. The return compared to investment would not be so lucrative. It is only possible because of 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.
 
As a trader we have to understand first of all the basic of leverage ratio 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.
 
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.

Agree with you. Leverage gives us an advantage and traders should not try to abuse that advantage. As you said it is a double edged sword so it can do great harm if you don't handle it properly. Use proper money management with leverage and it will be rewarding.
 
Leverage is important for us because leverage will help us to trade with small amount. If we trade without leverage, we need to invest huge amount to start trading. When trading in FXB, I use 1:500. It's not too high in my opinion. Because if we use higher leverage, the risk will be higher too if we can not control our emotion when trading
 
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.
 
In Forex trading from all trading elements leverage is one of the manly issue which an investor should consider when choosing a broker. The leverage at all times contains risk , so before using at any leverage it is more appropriate to make sure the most accurate risk management approach , otherwise you can fall a great loss when trading.
 
the leverage always works as a killer. Because the traders we have always fall a great loss by using leverage especially when high ration. But sometimes it brings profit very rapidly when there is real trading plan with great risk management approach. Actually forex market is too much risky and volatile. Risk is everywhere and from all trading elements leverage always contains more risk. so before trading with leverage we have to make sure how to manage risk in Fx.
 
Leverage is an important tool for trading. If you will learn it well then you will gain more profit. Experienced traders know it very well that how this tool can manage your trade and risk to grab more profit from trading.
 
What leverage will you advice as a newbie trader to use? Do you think 1:1000 is too high for inexperience trader to use? Because I have been advised against using high leverage but again I thought it broker have provided it why won’t I use it. What you think?
 
If a broker is going to provide you any leverage then it does not mean that you should use that only just because a broker is providing. use your mind and then choose the right way to trade.
 
If a broker is going to provide you any leverage then it does not mean that you should use that only just because a broker is providing. use your mind and then choose the right way to trade.
I think it's fully understandable. Other way, everyone would blow accounts using 1:2000 :D :D
 
What leverage will you advice as a newbie trader to use? Do you think 1:1000 is too high for inexperience trader to use? Because I have been advised against using high leverage but again I thought it broker have provided it why won’t I use it. What you think?

No, you can’t take any decision based on others! For being a successful Forex trader, you have to make your trading plan first, then execute it according to your plan! By the way, I seem new traders need to use low trading leverage, because high leverage always inspires to take high risks.
 
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.
 
In Forex How much money you can earn by using leverage, it depends on proper trading planning. Now I am more comfortable with 1:100 leverage. Sometimes I use up to leverage 1:500 when I can calculate the market with surely.
 
A credit shoulder - is actually a trader's friend and helper! The more - the better. Those who write that the credit shoulder is a killer for the deposit, should justify and give concrete facts, how exactly does this credit kill the deposit? Many newbies heard this stupidity somewhere and repeat it to other newbies.
 
To leverage the selection depends on the capital you have, if you are trading with small capital so it is better to trade using high leverage so that the resilience of our account will be maintained
 
Yes, leverage is important but I have seen so many negative comments here on leverage! Listen, you have to understand first your trading strength; even high leverage can profitable to you if you have enough knowledge!
 
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