Greetings fellow traders. Quick question here. I see one broker offering a leverage of 1000:1 with a low deposit. Would you be willing to trade such a small account on such leverage?
You have two way's to the same outcome: 1) lose your capital, you end up with zero. 2) You win big, and break up their bank, you end up with zero.
Sure. Why not? It's only $100. Target it right, catch the wind right, good payout. Occasional lottery tickets are worth a shot. But only once.
You guys don't understand how to use leverage. You don't use 1000:1 leverage with your starting balance. You build up some profit first using much lower leverage. Then leverage up the profit as your account grows. At some point you got to back down again, because you can't keep pressing your luck forever. Eventually it runs out.
I honestly think it's a great idea, but I would only do it during a rally, and sell it at a low percentage gain as fast as possible.
leverage is a good idea, otherwise what’s the point of trading futures, it might well be just buying stocks and bonds.