Use Of Leverage !

Discussion in 'General Trading Discussion' started by TraderAnalyst, Nov 12, 2019.

  1. TraderAnalyst

    TraderAnalyst Senior Investor

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    It is seen among forex traders that they use leverage given by brokers aggressively which is a big mistake. They use maximum amount of leverage provided by brokers which can result in a loss. So beware traders and play carefully.
     
  2. J_C_Anderson

    J_C_Anderson Senior Investor

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    In my opinion, large leverage provided by the brokers is one of the main reasons of Forex trading popularity. If one has only $100, it is almost impossible for him to get sufficient profit at any of the regulated markets while in Forex trading he could increase substantially his buying using the leverage provided by trading platforms. That is why it is so important to pay attention to the risk management to reduce the risk of the huge financial loss. In other words, each trader will have to find an optimal balance between account protection and profit potential depending on his financial capabilities and attitude to risk. Most of the newbie traders fail just because they overload their accounts with the possitions they cannot maintain that results in "margin call"
     
  3. Buyonthedips

    Buyonthedips Senior Investor

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    I totally agree, put simple, investors need to appreciate and balance the risk/reward ratio. Are you paying a fair price for the risks associated with an investment compared to the potential returns?
     

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