As expected. Traders are easily losing their money to higher leverage without understanding how ineffective this can be for them.
I don’t think so. Even though the maximum leverage ratio is 500x, crypto currencies don’t fall in this category. The leverage ratio for them is 6x. But now that we’re talking about it, I have wanted to ask for quite a while whether trading cryptos and forex is the same? I mean in terms of trading strategies
Well the only similarity I have judged so far among these two is that they involve exchanging one currency for another. However, they are different in terms that forex trading is more regulated, stable, and protected while the crypto currencies are hosted online and backed by an authentication procedure usually called peer-to-peer that eventually prevents one from using it more than once.
Clearly Forex trading is better and safer than trading crypto currencies despite many saying that the latter generates better results in terms of profits. As far as the 1:30 leverage ratio is concerned, I wonder what’s the problem with that? There are professional and experienced traders who swear by low leverage. The only reason many traders still opt for low leverage is that it safeguards your capital in case you make a trading mistake while keeping your returns consistent.
Call me a lousy trader but despite trading for 4 years, I still prefer using 10:1 or max 20:1 leverage ratio and I agree with what you’re saying here. Contrary to what many think, it’s really possible to trade with this much or lower leverage ratio and there are brokers like Fxview and Oanda that help a trader trade with flexible ratios and make profits.
I prefer fighting with a sword rather than a gun, because although gun is more powerful in killing enemy, but it can also kill myself. So I want to prohibit a gun from everyone that wants to fight with enemy. People all should be only allowed to use swords.