How does over-leveraging affect trading?

Discussion in 'Forex' started by Alexis_0, Aug 7, 2024.

  1. Alexis_0

    Alexis_0

    High leverage is a good facility to have from a broker but will you say why should we keep away from over-leveraging?
     
  2. maxinger

    maxinger

    It is foolish to stay away from high leverage product or brokers that offers high leverage.
    Be thankful that you just need to put a small amount of money in your trading account.
    So even if the broker CEO goes to India to die, you don't have to worry so much.


    Always check your trade plan and see what its the max quantity / lot you are allow to trade.
    If you are unable to keep to that promise,
    then give up trading totally.

    So high leverage has no negative effect on trading.
     
    Last edited: Aug 7, 2024
  3. tomkat22

    tomkat22

    If you're a lousy trader leverage just allows you to lose money faster.
     
  4. alistera

    alistera

    Leverage = notional value of your capital
     
  5. shine

    shine

    In trading, it is important to control risks. Then the losses from incorrect transactions will be minimal, which can be compensated later without unnecessary anxiety and fuss. That is why I trade with a small leverage even when my broker fxopen gives the opportunity to trade with a much larger leverage.
     
    comagnum likes this.