Forex Zone - Forex Forum

Leverage is useful or dangerous?

Discussion started on General Forex Discussion

  • Sr. Member
  • Posts: 318
  • Points: 0
  • Likes Received: 50
  • Reputation: +1/-0
but most professional traders usually tend to use medium or minimal laverage, but return to the type of trader too, because each trader will not be the same as the skile and the type.
Professional traders are supported with large capital so small leverage is enough because their target is usually 10% per month of capital.
#31 - February 10, 2019, 02:27:31 AM

  • Full Member
  • Posts: 227
  • Points: 0
  • Likes Received: 12
  • Reputation: +1/-0
leverage if the loan is a loan from the broker, the greater the leverage, the margin (loan capital) we will be more related to the number of transactions that we can open, the more the margin, the more we can open the position, why brokers can lend capital to us? yes because we press guarantees which are our deposits, meaning that the guarantee runs out, our account cannot transact again which means our account is MC.

So do you think leverage is useful or dangerous?
actually if we use large leverage it allows us to open more positions

but it is a weakness if we use large leverage, we are getting closer to the MC
#32 - February 10, 2019, 02:28:30 AM

  • Full Member
  • Posts: 240
  • Points: 0
  • Likes Received: 17
  • Reputation: +0/-0
actually if we use large leverage it allows us to open more positions

but it is a weakness if we use large leverage, we are getting closer to the MC
that's what I say is dangerous because we tend to overlap and over trade, if the price matches the analysis we are indeed big profits, but if it turns out the price is against our entry direction, heeee's history is over
#33 - February 10, 2019, 02:37:05 AM

  • Full Member
  • Posts: 227
  • Points: 0
  • Likes Received: 12
  • Reputation: +1/-0
that's what I say is dangerous because we tend to overlap and over trade, if the price matches the analysis we are indeed big profits, but if it turns out the price is against our entry direction, heeee's history is over
I've tried using 1000 leverage
and when the MC balance to zero
different if you use 100 leverage
if mc still has the balance

that makes me prefer using leverage 100
#34 - February 10, 2019, 02:40:52 AM

  • Sr. Member
  • Posts: 318
  • Points: 0
  • Likes Received: 50
  • Reputation: +1/-0
I've tried using 1000 leverage
and when the MC balance to zero
different if you use 100 leverage
if mc still has the balance

that makes me prefer using leverage 100
it is very true and the function of leverage is that when small leverage then our balance is not directly mangelami margin call but there are some policies from the broker what percentage of our stop out.
#35 - February 10, 2019, 02:48:03 AM

  • Sr. Member
  • Posts: 318
  • Points: 0
  • Likes Received: 50
  • Reputation: +1/-0
that's what I say is dangerous because we tend to overlap and over trade, if the price matches the analysis we are indeed big profits, but if it turns out the price is against our entry direction, heeee's history is over
if we are ready to risk big, the big leverage is the choice, but if we cannot control emotions and are unable to risk big, then the small leverage of choice, all depends on traders who are suitable to use leverage.
#36 - February 10, 2019, 02:52:50 AM

  • Full Member
  • Posts: 234
  • Points: -10
  • Likes Received: 15
  • Reputation: +1/-0
leverage if the loan is a loan from the broker, the greater the leverage, the margin (loan capital) we will be more related to the number of transactions that we can open, the more the margin, the more we can open the position, why brokers can lend capital to us? yes because we press guarantees which are our deposits, meaning that the guarantee runs out, our account cannot transact again which means our account is MC.

So do you think leverage is useful or dangerous?
leverage is like a gun, how you use it, if you use for killing people, or hunt an animal to get food, man behind the gun is who controlling the leverage
#37 - February 10, 2019, 03:08:51 AM

  • Full Member
  • Posts: 240
  • Points: 0
  • Likes Received: 17
  • Reputation: +0/-0
if we are ready to risk big, the big leverage is the choice, but if we cannot control emotions and are unable to risk big, then the small leverage of choice, all depends on traders who are suitable to use leverage.
if I focus more on large capital, rational targets and a small risk limitation, because if we are hit again and again if the risk is small then it will be fairly quickly recovered with just a few take profit. with moderate laverage.
#38 - February 10, 2019, 03:26:49 AM

  • Sr. Member
  • Posts: 318
  • Points: 0
  • Likes Received: 50
  • Reputation: +1/-0
if I focus more on large capital, rational targets and a small risk limitation, because if we are hit again and again if the risk is small then it will be fairly quickly recovered with just a few take profit. with moderate laverage.
Big capital does have advantages such as controlling our risk, we just use risk reward 1: 2 mak if the loss of 2 times will be covered by our one-time profit.
#39 - February 10, 2019, 03:29:38 AM

  • Full Member
  • Posts: 125
  • Points: 0
  • Likes Received: 22
  • Reputation: +0/-0
for me leverage is beneficial because it can withstand the resilience of our balance, but return to the trader, for example, the trader is too small, then the way of the market, for example in the direction of prediction, we can use it and vice versa
#40 - February 10, 2019, 03:35:04 AM

  • Sr. Member
  • Posts: 318
  • Points: 0
  • Likes Received: 50
  • Reputation: +1/-0
for me leverage is beneficial because it can withstand the resilience of our balance, but return to the trader, for example, the trader is too small, then the way of the market, for example in the direction of prediction, we can use it and vice versa
leverage is also useful for people who use a martingale or averaging system that requires a large enough margin and the bias of an account to use EA is very suitable to use rather large leverage.
#41 - February 10, 2019, 06:05:41 AM

  • Full Member
  • Posts: 227
  • Points: 0
  • Likes Received: 12
  • Reputation: +1/-0
it is very true and the function of leverage is that when small leverage then our balance is not directly mangelami margin call but there are some policies from the broker what percentage of our stop out.
Most traders use large leverage
Maybe they want to get a quick profit
will be fixed by opening a large position
also provides a considerable potential loss
high risk hight reward
#42 - February 10, 2019, 03:19:54 PM

  • Full Member
  • Posts: 177
  • Points: 0
  • Likes Received: 16
  • Reputation: +3/-3
leverage is very useful for people who have a small balance ....... can you imagine having a balance of 50 $ with laverage 1:10 maybe it won't be able to open a position
#43 - February 10, 2019, 03:38:27 PM

  • Full Member
  • Posts: 247
  • Points: 1009
  • Likes Received: 26
  • Reputation: +0/-0
leverage if the loan is a loan from the broker, the greater the leverage, the margin (loan capital) we will be more related to the number of transactions that we can open, the more the margin, the more we can open the position, why brokers can lend capital to us? yes because we press guarantees which are our deposits, meaning that the guarantee runs out, our account cannot transact again which means our account is MC.

So do you think leverage is useful or dangerous?
laverage in practice is actually very helpful for traders with small capitals to be able to maximize profits, but unfortunately with a large spread of brokers, traders open large lot positions so that when the transaction is minus much, what happens is that stop outs can make zero balances without remainder, , it is always wise to use laverage because this way it might be possible for traders to use lots that are minimal in transacting as a form of managing risk correctly
#44 - February 10, 2019, 03:40:41 PM

  • Full Member
  • Posts: 227
  • Points: 0
  • Likes Received: 12
  • Reputation: +1/-0
for me leverage is beneficial because it can withstand the resilience of our balance, but return to the trader, for example, the trader is too small, then the way of the market, for example in the direction of prediction, we can use it and vice versa
leverage in my opinion is better to use the standard
usually professional traders use 100 leverage
and I tried to use leverage 100 which was very difficult to regulate my psychology
because I can't open a position excessively
#45 - February 10, 2019, 03:44:13 PM

Members:

0 Members and 1 Guest are viewing this topic.