Will you still trade if If there is no leverage in Forex ?

Discussion in 'Forex Trading' started by Jack francisco, May 10, 2012.

  1. Assuming there is no opportunity of using leverage in Forex meaning you can only trade with amount you've in your account and no leverage to increase your trade volume- will you still trade Forex considering the risk yet no leverage to give big profit on small investment

    What you think is it more profitable or not?
  2. AK100


    If you take away the leverage there's little risk. in FX, think about it.
  3. they only take leverage away for bankrupt nation players.............:)

    the rest of us get to play at 500:1



  4. JB3


    Why would they do that though? It's better to drain the investors account at a fast pace. But if they do that, I'm sure the market and trading will dry up for the retail folks. This is the last great frontier where fortunes can be made....or at least that is what they want you to believe.

    I would probably not trade Forex if there was no leverage. What would be the point? Making a few hundred bucks? Nah.
  5. It depends on the bank roll you are working with.

    I am under capitalized at the moment.

    So 4 times leverage in the stock market would be much more attractive.
  6. when Pimco decided rates were too low they sold a lot of bonds and put the cash in Swiss banks in CHF. Like they said, "Yeah, we sold too early, but we didn't do that bad in Swiss Francs ."

    What was it Groucho Marx said when they told him you can't make any money in T Bills?

    Oh yeah, "You can if you have enough of them."
  7. Lucrum


    Most retail FX traders use too much leverage anyway.
    globalarbtrader likes this.
  8. You can leverage if you really want to:

    short eur futures + long chf futures = leveraged eur.chf

  9. oh for crying out loud, it's just a commodity, very difficult to make money in any commodity without leverage.

    Every now and then one doubles, like cotton or crude, but most of them will underperform a decent stock. To make money in commodities (and that's all a currency is) you need leverage.
  10. Lucrum


    #10     May 14, 2012