Leverage Does not Blow Your Account - page 2

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Using leverage in forex is of advantage but how you use it matters . The more the leverage the more risk you take. And so if you want to use high leverage you should enough experience to handle the risk involved.

 
it is possible to make profit very rapidly by using high leverage.

It is possible to lose you account even faster using high leverage - you will not be able to blink and there it will go

 

trading with insufficient equity is always dangerous, regardless with leverage is used, with proper money management, leverage isn't a problem anymore.

 
ProFXManager:
trading with insufficient equity is always dangerous, regardless with leverage is used, with proper money management, leverage isn't a problem anymore.

With leverage 1:1000 you have to take cents orders in order avoid risk. And with brokers limiting the minimal lot size, you are not in control of your risk (assuming that people trying to use 1:1000 leverage are hoping to make a lot from little)

That is a one way street

 

Leverage is good for me because we have to manage our lot size as per our balance. Just keep about 1000 pips margin in account and do not open many positions at same time.

 

Nice definition of "overleveraged" (not directly connected to foex, but ... )

INVESTOPEDIA EXPLAINS 'Overleveraged' Occurs when a business has borrowed too much debt, and is unable to pay interest payments on the debts. Companies that borrow too much and are overleveraged are at the risk of becoming bankrupt if their business does poorly. A company not overly leveraged is better able to sustain drops in their business profits. Businesses that borrow money to add to a product line, expand internationally or upgrade their facilities are often better able to offset the risk they take on when leveraging.
 

i think the best leverage for forex trading is 1:200. it won't blow your account if you have a good money management.

 
Elha:
i think the best leverage for forex trading is 1:200. it won't blow your account if you have a good money management.

1:200 will blow your account in no time

 

I have a feeling that the title of this thread is nothing but a joke

 
whisperer:
I have a feeling that the title of this thread is nothing but a joke

That is called "market conditioning"

You let statements like that float around and then, when you (as a broker), try to sell a 1:2000 leverage the buyer is happy because he already heard that "high leverage is safe"

That is all just an elaborate commercial trolling

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