high leverage high risk?

Discussion in 'Forex' started by Stephen Andrew, Jun 21, 2020.

  1. Chyu

    Chyu

    Be that as it may, the risk is always paid. And yes, the higher the risk, the more interesting the payment.
     
    #21     Jun 24, 2020
  2. actively

    actively

    Now that I think about it, I agree with you. It is best to use higher leverage if you are very well aware about your trading style and risk that you will be getting
     
    #22     Jun 25, 2020
  3. bublu

    bublu

    There are some brokers which offers leverage up to 1:1000 on micro accounts and 1:400 on regular accounts however there are also few advertising claiming 1:3000 leverage which seems pretty unreal in my opinion. New traders being unaware of the market conditions should keep the leverage low in start because high leverages can claim higher damages too.
     
    #23     Jun 26, 2020
  4. Zalak

    Zalak

    Any leverage is definitely your own risk.
     
    #24     Jun 26, 2020
  5. SunTrader

    SunTrader

    Risk is of an event happening - market going up or going down for example.

    Not how much is involved in that trade position.
     
    #25     Jun 27, 2020
  6. Leverage is believed to be associated to high risk as it magnifies the potential profit or loss making capacity of a trader. But according to me, leverage is very useful as it reduces the funds actually required by a trader and allows to place trades of a greater lot size, thereby increasing the profitability. Just keeping a close watch and managing the trade portfolio can really bring out the benefits of using high leverage.
     
    #26     Jun 28, 2020
  7. SunTrader

    SunTrader

    Uhhhh Check the math and the definition .... again. Leverage works both ways.
     
    #27     Jun 29, 2020
  8. guowei58

    guowei58

    if trend * discipline = 1, then leverage = 1
    else leverage = 0
     
    #28     Jul 1, 2020
  9. Esha.J

    Esha.J

    Risk is an inevitable factor in Forex trading, any transaction done in Forex involves risk in it with the ratio of reward. If you expect to earn high profit from high leverage taken then it will obviously have high risk too.
     
    #29     Jul 2, 2020
  10. Risk can't be controlled. At the same time, higher leverage will also multiply the potential margin.
     
    #30     Jul 3, 2020