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Additional Username
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Joined Apr 2018
|323 Posts
before using high leverage in live account ,
it is more appropriate to use it in demo to see the performance how it works.
otherwise it can causes a great risk and losses.
Sorry for the sheer ignorance of these questions but i just cant seem to get my head round leverage and how it works, I understand that its a way of 'borrowing' money so you can trade with more money than your actually capital, but... 1) Is it then possible to nearly/completely wipe my account with one bad trade or on the other extreme, make a complete killing on one good trade? 2) Do you have to use leverage? Is it needed to be profitable in the long term? Could someone explain it please I just cant seem to get my head around it. Thanks
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Leverage must be used carefully as although it allows higher gains through less investment, but it can also amplify the losses. Trading with a lower leverage ratio might be less risky.
before using high leverage in live account , it is more appropriate to use it in demo to see the performance how it works. otherwise it can causes a great risk and losses.
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Whatever; using high trading leverage is not prescribable; because it can damage our trading equity at any time. So, seeking for high leverage it’s a disease.
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Joined Apr 2018
|459 Posts
leverage is an important financial tool which an investor should consider when choosing a broker , it contains huge risk than other financial tool , so before using leverage first of all make sure good risk managing plan.
leverage is an important financial tool which an investor should consider when choosing a broker , it contains huge risk than other financial tool , so before using leverage first of all make sure good risk managing plan.
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NathanAstel, could you please give an example for a good risk managing plan? I’ve heard that you can have the best forex trading system in the world, but without a solid forex risk management plan in place, you could lose everything. Are you limiting your trade lot size, hedging, trading only during certain hours or days or you have something else in mind?
