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High leverage , High Risk ?

Discussion in 'Forex Training And Education' started by shafiq Rahman, Dec 13, 2016.

  1. shafiq Rahman

    shafiq Rahman ECZ Member

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    According to my trading experience, I don’t consider high leverage at any risk, if there is any risk, it is completely with non-sense planning and zero risk management policy, nothing to do with high leverage. So, before trading with high leverage, we have to know how to manage risk.
     
  2. Vezet

    Vezet ECZ Newbie

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    High leverage is not in itself a danger! It is a very powerful tool in the Forex market which is designed to help traders. This is another story when traders don't know how to use it. The risk doesn't depend on the leverage but on the volume of a deal. There is an exapmle of it: you went to sunbathe. Sunbathing for a little amount of time and periodically you will get a beautiful and even tan + get a dose of vitamin D, and if you stay in the sun for a long time, you will burn and it is very harmful.
     
  3. pipexch

    pipexch ECZ Member

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    I know freshforex gives a leverage of up to 1:2000 for new traders who deposit amount not less than $1000. I believe such a high leverage will give traders with good trading skills to make money out of the fore market
     
  4. Sininfinity

    Sininfinity ECZ Member

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    Well said. People who abuse leverage suffer from that. Leverage just reduces margin requirements if risk is properly managed. But if a trader tries to get rich overnight then it can do harm to that trader.
     
  5. SusanaP

    SusanaP ECZ Member

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    High leverage is not in itself a danger! So says trading beginners guide however you have to know how to control trading, mainly emotions
     
  6. pipexch

    pipexch ECZ Member

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    This is not necessarily true, all falls down to your trading strategy, if your strategy is good then high leverage is good for you, See, Brokers such as Fxglory, fbs and justforex that offer leverage of 1:3000, have very high spreads on the slip side.
     
  7. Herman Lopez

    Herman Lopez ECZ Member

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    Yes, the higher the leverage, the higher the risk. Many beginners make mistakes because of using too high leverage. I personally just use 1:100 leverage with FreshForex although it offers up to 1:1000.