Leverage Is A Big Advantage For Small Traders

Discussion in 'General Trading Discussion' started by Benigna Mazzi, Dec 28, 2021.

  1. Benigna Mazzi

    Benigna Mazzi Senior Investor

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    Leverage is a big advantage for small traders. That is why even small traders can make as much profit as large traders. You can manage it with the right knowledge. My broker Eurotrader offers free educational courses, which are of great help in gaining trading knowledge. It also features built-in economic calendar and sentiment indicator, responsive customer support and etc.
     
  2. Jameson Davis

    Jameson Davis Active Member

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    Yes, it is a big advantage for the small traders to get some profit from the financial markets.
     
  3. mikenovo

    mikenovo Senior Investor

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    Leverage can be an advantage, but it can also be a problem. Large leverage leads to losses when one doesn't know what they are doing. According to the UK regulator FCA British traders have saved 451 million pounds per year thanks to leverage restrictions.
     
  4. mullbull

    mullbull Active Member

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    Well... leverage should treated with care; over-leveraging is one of the sins of new traders.
     
  5. mikenovo

    mikenovo Senior Investor

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    I agree. Too much leverage causes serious problems more often than not.
     
  6. Lindsey J. Crosby

    Lindsey J. Crosby Senior Investor

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    Leverage can be dangerous and huge, and it can also be risky if it is used as a high-risk instrument. The risk association configuration is essential for traders who want to enable leverage to be unmistakable. Management of your risk is the most difficult and challenging part of trading. This article will help you to determine the best structure to manage your risk to ensure that your trading career continues. My leverage is 100:1, but my broker Eurotrader offers 1:500 leverage. Their deposit and moment withdrawal systems are also very appealing to me. The broker charges 50$ for a base deposit.
     
  7. mikenovo

    mikenovo Senior Investor

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    I think that is why it is more prudent to use smaller leverage in general.
     
  8. Glad22

    Glad22 Active Member

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    Yes leverage is wonderful especially for newbies, but one has to be careful because leverage can be a double edged sword. At first when I saw forexchief max leverage at 1:1000 it was a bit off for me until I realized the dangers of trading with a higher leverage when the risk is not managed properly. A trader should only use leverage when the advantage is clearly on their side, because the higher the leverage the higher the lose when things go wrong.
     
  9. mikenovo

    mikenovo Senior Investor

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    I'd never use leverage that high, it's much too dangerous.
     
  10. Glad22

    Glad22 Active Member

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    Very, you have to be reasonable using leverage.
     

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