How do you use leverage in forex trading?

Discussion in 'Forex' started by Franziskaschulz, May 19, 2023.

  1. Hello everyone!
    I am here to ask another question, could you please tell me that how do you use leverage? What is the highest leverage that you trade on?
    Do you change your leverage when you are sure about your trade? (I know all the basics about leverage and how it can be a double edge sword)
     
  2. Before using the leverage I assess my risk tolerance on that pair and market. leverage expand both profits nd losses, so I consider how much risk I am comfortable taking. I avoid overleveraging, as it can quickly delete my account if trades move against me.
     
    Franziskaschulz likes this.
  3. kroxobor

    kroxobor

    If you use leverage you pay swaps overnight. Not good for long-term swing positions since it eats up your profit or increases loss. The rest is basically the same since profit or loss from a position affects your margin (independent from leverage size).
     
    Franziskaschulz likes this.
  4. that's right , agree with you
     
  5. when i got perfect target use more than 1:500 leverage , sometimes make huge amount of profit sometimes losses.
     
  6. That is the way that i use it too!
    when I am sure about a trade i will use high leverages, thank you for your comment and agreeing with me!
     
  7. I use the leverage base on my risk management. Proper risk management is crucial when I use leverage. Setting stop-loss orders to limit potential losses on each trade and Considering using risk management techniques such as not risking more than a certain percentage of your account balance on each tradeare important.
     
  8. I try to test on a specific currency pair first, and then when I feel that I have mastered that currency pair, I use higher leverage. And in general, I welcome and like the high leverage.
     
  9. in demo i use high leverage to see the performance how it works. this approach supports me very well in a real account top avoid unfortunate risk and losses.
     
    Franziskaschulz likes this.
  10. this approach is really good but old version and not work's as like before.
     
    #10     May 22, 2023