high leverage high risk?

[tedmos38]

Yeah, that's true!! With high leverage, the position fluctuates more rapidly as the price action is multiplied with the leverage on board. So there are high chances of making profits or losses quickly. But most of the traders lose due to lack of market knowledge and a trading strategy.
However, it is not that one should never use high leverage. One can for sure, but then he has to maintain a good margin in his account so that the position is sustained and not stopped out if the market is moving against the trade. And also one should be aware of the consequences of using higher leverage.

 

[maxinger]

high leverage low risk.
very high leverage very low risk.

You simply put just a little money into your trading account.

Similarly, a very sharp knife doesn't mean it is very risky.

 

[tedmos38]

Hey there, I don't think you are saying it right, leverage is a highly delicate tool when it is connected with your real money, it may multiply the profits but it can suck all your invested capital. Many new traders can read and get mislead. #nooffence.

 

[eapros]

yes and also high profits

 

[Stephen Andrew]

i am using right now 1;200 leverage in demo ,
during news i use less amount of leverage.

 

[Bill Marwick]

High leverage also means high risk. I always prefer using as less as I can.

 

[Ahmed Solaiman]

which leverage ratio do you use at all times above all during news , generally news time spreads wide more and more than normal time.

 

[Abbas Ali Khan]

i never trade during news , because it causes always a great risk for me when particularly there is not enough strong fundamental knowledge.

 

[Burigelv]

As for me, it also sharply depends on the leverage on which broker you cooperate with and how much you trust him

 

[NeilKruger]

Maximum traders in Forex like to trade with high leverage for making profit instantly. But traders who make profit consistency , I don’t think they use high leverage. They way I see it. High leverage gives us the benefits not to worry about margin requirements and one less thing to focus on. Abusing leverage can be costly for traders.