DislikedActually they do. Otherwise the 95% of losing traders would be hard to reach.
Well.... good for the brokers most people enjoy high leverage.
I have blown my accounts? If you say so... and at last you are the one profiting every month with this insane leverage aren't you?Ignored
Second,
There are two traders both with $10,000 accounts
trader a is leveraged at 100:1 and trader b is at 200:1. Both traders
target 100pips and both limit there risk to 2% total account size.
Trader a buys 1 lot with a 20 pip stop loss trader b buys 1 lot with a
10 pip stop loss. The position goes against both and they are stopped
out. Trader a at 100:1 with 1 lot lost 20 pips at $10 per pip gives
him $200 of his total account. Trader b leveraged at 200:1 with 1 lot
lost 10 pips at $20 per pip gives him $200 of his total account. Both
traders are thus able to suffer 50 losses prior to there accounts
being at 0. For arguments sake lets assume that the spread is included in the SL to account for the overall risk.
How is the trader with more leverage risking more? Also please do not try to ignor the question by saying that no one trades with 10 and 20 pip stop losses.