High leverage vs Low leverage | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

What are Higher High, Higher Low, Lower High and Lower Low? 11 replies

Low spread and high leverage broker needed 31 replies

High Leverage vs Low Leverage 21 replies

High Leverage vs Low Leverage 20 replies

High to High and Low to low time cycles 1 reply

High leverage vs Low leverage

  • #21
  • Feb 24, 2015 6:01pm Feb 24, 2015 6:01pm
Quoting Profit Daily
{quote} Once again, you are assuming a 50% win rate. If I win 70% of my trades with an average risk;reward of 2 to1, the more leverage the better! I also scale into trades so I'll open a trade with 10:1 when it goes in my favor 100 pips, I'll add at 10:1 and move stops to be. I have experienced times where I am at 200:1 with stops at break even, risk free.
If you bet on black and win 70% of the time in roulette... My assumption of a 50% win rate has justification, yours doesn't.

If you had a 70% win rate pip wise, you would have billions by now. If I can't teach you a lesson, the market will do it for me.
  • #22
  • Feb 25, 2015 1:28am Feb 25, 2015 1:28am
I also agree with a higher leverage is better for beginners.
  • #23
  • Feb 25, 2015 7:12am Feb 25, 2015 7:12am
Quoting replaced
{quote} If you bet on black and win 70% of the time in roulette... My assumption of a 50% win rate has justification, yours doesn't. If you had a 70% win rate pip wise, you would have billions by now. If I can't teach you a lesson, the market will do it for me.
Roulette is a bad example. You see it pays 35 to1, while the odds are 38 to 1. there is a house edge. In trading it is your job to have an edge over the market. You are right in the fact a 50% win rate, all trades being equal, you will lose spread and commission. My win rate is above 70%, I don't have billions because I withdrawal weekly on a very small account. because of high leverage, I start my week with $50, and will only reload 1 time that week if i lose, so $100 max. 3 out of 4 weeks, I will withdrawal $800+, while the other week I will lose $100. But thanks for attempting to analyze my trading and money management.
  • #24
  • Feb 25, 2015 7:43am Feb 25, 2015 7:43am
One should calculate risk per trade. if it is only 5 pips stop and one risks 2%, so it can be high leveraged.
But one should know that any leverage can kill ones account when Swissie makes next unpredictable turn.
it's o'k to win ...
  • #25
  • Feb 25, 2015 8:16am Feb 25, 2015 8:16am
Quoting zenseven
One should calculate risk per trade. if it is only 5 pips stop and one risks 2%, so it can be high leveraged. But one should know that any leverage can kill ones account when Swissie makes next unpredictable turn.
Exactly my point. Some pairs require a larger stop loss than others. GBP/JPY, GBP/AUD frequently moves 50-60 pips in minutes without news, daily range is 250-300. USD/CAD, EUR/GBP much lower daily range. It's all about % per trade, leverage should be adjusted based on stop loss to equal your % risk.
  • #26
  • Feb 25, 2015 8:26am Feb 25, 2015 8:26am
I think in the end it doesn't matter. You can do decent money also with low leverage. It's up to you how you manage your monies. The only difference is that with very high leverage the risk of getting a margin call is likely more probable.
  • #27
  • Feb 25, 2015 8:32am Feb 25, 2015 8:32am
Quoting emanco
I think in the end it doesn't matter. You can do decent money also with low leverage. It's up to you how you manage your monies. The only difference is that with very high leverage the risk of getting a margin call is likely more probable.
Which is why it is imperative to keep your forex funds in your own bank. When trading with a high leverage broker, you only need to deposit what you are actually risking on your existing trades. With a low leverage broker, all the crap in the US, for example, you need to deposit 10 times what your risking just to cover the margin requirements.
  • #28
  • Feb 25, 2015 11:12am Feb 25, 2015 11:12am
Quoting Profit Daily
{quote} Roulette is a bad example. You see it pays 35 to1, while the odds are 38 to 1. there is a house edge. In trading it is your job to have an edge over the market. You are right in the fact a 50% win rate, all trades being equal, you will lose spread and commission.
No, roulette is a good example. It pays 2 to 1 if you get or black or red, it only pays 35 to 1 if you pick a number. It's possible to predict where the ball will probably land land in roulette, however you would have to know exactly how fast the ball and wheel is spinning. Something that can't be done by just looking. Forex is the same.


Quoting Profit Daily
My win rate is above 70%, I don't have billions because I withdrawal weekly on a very small account. because of high leverage, I start my week with $50, and will only reload 1 time that week if i lose, so $100 max. 3 out of 4 weeks, I will withdrawal $800+, while the other week I will lose $100. But thanks for attempting to analyze my trading and money management.
My BS meter is off the charts. Of course you do. You purposely leave your account with $50 to ensure that you don't make millions. Instead of withdrawing $800 and leaving $50 bucks in the account, why don't you withdrawal $750 and leave $100 in the account? That way you'll end up with $1600 next week. Putting $50 in a Forex account sounds like you take on a lot of leverage in Forex.
  • #29
  • Feb 25, 2015 12:26pm Feb 25, 2015 12:26pm
Quoting replaced
{quote} No, roulette is a good example. It pays 2 to 1 if you get or black or red, it only pays 35 to 1 if you pick a number. It's possible to predict where the ball will probably land land in roulette, however you would have to know exactly how fast the ball and wheel is spinning. Something that can't be done by just looking. Forex is the same. {quote} My BS meter is off the charts. Of course you do. You purposely leave your account with $50 to ensure that you don't make millions. Instead of withdrawing $800 and leaving $50 bucks in the account,...
It is quite clear you have no idea what you are talking about. Black and red pay even money. You don't count your bet as part of the payout, if you put $10 on black and it's black they pay you $10 and the two green zeros are what give the house the edge. So your odds are 18/38 or 47.3 %. How is forex the same as randomly guessing the number on a roulette wheel. As far as why I withdrawal, I use it to pay bills. In addition, because I trade offshore, I'm intelligent enough to not leave large sums of money with the broker. And yes I do trade with high leverage, that was my entire point in the first place! I'm also done as I cannot have an intelligent debate with someone comparing forex to roulette, yet not even knowing the payouts on roulette.
  • #30
  • Feb 25, 2015 12:31pm Feb 25, 2015 12:31pm
Couple of other things, columns pay 2 to 1, your odds are 12/38 or 31.5%. Odd and even pays even money, once again green zeros give the house the edge, so same odds as black or red. Just in case you were going to come back with either of those.
  • #31
  • Feb 25, 2015 12:39pm Feb 25, 2015 12:39pm
Quoting Profit Daily
{quote}... As far as why I withdrawal, I use it to pay bills. In addition, because I trade offshore, I'm intelligent enough to not leave large sums of money with the broker. And yes I do trade with high leverage, that was my entire point in the first place! I'm also done as I cannot have an intelligent debate with someone comparing forex to roulette, yet not even knowing the payouts on roulette.
Why would you trade offshore with what you claim to be a 70% win rate when you can trade with a big reputable brokers here or at least a couple different ones and so have large sums of money? Also, why would you trade with just 50 bucks in your account? Are you like out of money or something?
  • #32
  • Feb 25, 2015 12:53pm Feb 25, 2015 12:53pm
Quoting replaced
{quote} Why would you trade offshore with what you claim to be a 70% win rate when you can trade with a big reputable brokers here or at least a couple different ones and so have large sums of money? Also, why would you trade with just 50 bucks in your account? Are you like out of money or something?
I trade offshore simply because I have less money at risk. It requires 10-15 times more in margin to execute the same trade. So while I have let's say $500 sitting with my broker, someone in the US has $6,000 just for margin on the same trades. Let's say both brokers disappear , go bankrupt, whatever overnight, I'm out $500, trader with US broker is out $6K. The regulations are not to protect you in the US. The NFA?CFTC actually prohibits brokers from segregating accounts or insuring funds. I would not have big money with any broker, it's safer in my FDIC insured bank account.
  • #33
  • Feb 25, 2015 1:35pm Feb 25, 2015 1:35pm
Quoting Profit Daily
{quote} I trade offshore simply because I have less money at risk. It requires 10-15 times more in margin to execute the same trade. So while I have let's say $500 sitting with my broker, someone in the US has $6,000 just for margin on the same trades. Let's say both brokers disappear , go bankrupt, whatever overnight, I'm out $500, trader with US broker is out $6K. The regulations are not to protect you in the US. The NFA?CFTC actually prohibits brokers from segregating accounts or insuring funds. I would not have big money with any broker, it's...
Why wouldn't you leave a little extra in your account so that you don't have to go so highly leveraged? Or do you not have the money to do this?

If you're so concerned about your broker going out of business why don't you open a Forex account with Citibank (citifxpro.com).
Their market cap is $157 billion or interactive brokers with a market cap of $1.88 billion. You could have your money on multiple brokers. But no, instead you're going to put 50 bucks in an offshore place with zero regulations.

I am convinced that you're not telling the truth about having a 70% win rate pip wise.
  • #34
  • Feb 25, 2015 1:54pm Feb 25, 2015 1:54pm
Quoting replaced
{quote} Why wouldn't you leave a little extra in your account so that you don't have to go so highly leveraged? Or do you not have the money to do this? If you're so concerned about your broker going out of business why don't you open a Forex account with Citibank (citifxpro.com). Their market cap is $157 billion or interactive brokers with a market cap of $1.88 billion. You could have your money on multiple brokers. But no, instead you're going to put 50 bucks in an offshore place with zero regulations. I am convinced that you're not telling the...
You can be convinced of whatever you wish, you think forex is like roulette. Neither of the brokers you mentioned protect forex funds, period. The NFA/CFTC does not allow it. I'm only highly leveraged with the amount I have with broker, I am not highly leveraged in comparison to the funds I have available to trade. I really think regardless of how I try to explain it, you're not going to get it. I simply see no need to put my entire forex roll with any broker or brokers, I only give them what is required for my current trades. It's really simple. If I have 10K to trade with and I want to risk 3% on a trade, they get $300 because they offer high leverage the margin requirement is less than I am risking. With these brokers in the US, I need to put up $3,000 in margin on a trade in which I'm only risking $300. What is the point in doing that. Money is not protected in either place, so if broker is gone tomorrow, I'm out $300, not $3,000. Look at all the "regulated" brokers in the US just in the past 5 years that clients can not get their forex funds back from. Do some research, please.
  • #35
  • Feb 25, 2015 2:03pm Feb 25, 2015 2:03pm
Quoting Profit Daily
{quote} With these brokers in the US, I need to put up $3,000 in margin on a trade in which I'm only risking $300. What is the point in doing that. Money is not protected in either place, so if broker is gone tomorrow, I'm out $300, not $3,000. Look at all the "regulated" brokers in the US just in the past 5 years that clients can not get their forex funds back from. Do some research, please.
What you're saying doesn't make any sense. Why don't you risk putting $1,000 on a US broker to make a billion? The ONLY way that you're not going to get a billion is because your broker goes out of business. So because the risk of your broker going out of business is so high, you're not even going to attempt to make a billion. Instead the most you're going to risk is $50-$500 with a 70% win rate.

Why don't you put your money in every single broker in the US? Either every broker in the US goes out of business or you end up with a billion. Why aren't you on here warning people to take their money out of Citi or IB since the risk of BK is so high?
  • #36
  • Feb 25, 2015 2:25pm Feb 25, 2015 2:25pm
Quoting replaced
{quote} What you're saying doesn't make any sense. Why don't you risk putting $1,000 on a US broker to make a billion? The ONLY way that you're not going to get a billion is because your broker goes out of business. So because the risk of your broker going out of business is so high, you're not even going to attempt to make a billion. Instead the most you're going to risk is $50-$500 with a 70% win rate. Why don't you put your money in every single broker in the US? Either every broker in the US goes out of business or you end up with a billion....
It doesn't work the same without the leverage, the money I can compound with now because it's free margin will be used margin with a US broker. So when I can take $50 into $800 by adding to winning positions and compounding with the free margin high leverage affords me. When I start with $50, I can trade 1 mini lot as it only requires $20 in margin. Trade starts moving in my favor and I add, moving stops to break even along the way. In the US, I need $200 in margin just to open the same position and will be margin called with any drawdown whatsoever. So while the $50 is a small % of my trading funds, I'm using the leverage to compound. Can't do that with 33:1 or 50:1.
  • #37
  • Feb 25, 2015 2:44pm Feb 25, 2015 2:44pm
Many users says that big levrg have a lot of opportunities. But it's not correct. I you have big levrg, so you have many risks to lose your deposit. All US companies give customers 50:1. 500:1 and more - for pro-traders. I advice you to use levrg not bigger than 100:1 for beginning
  • #38
  • Jan 29, 2016 11:14pm Jan 29, 2016 11:14pm
High leverage is a recipe for disaster its one of the reasons most people lose their account. Its better to start with low leverge and low risk
  • #39
  • Feb 27, 2016 3:14pm Feb 27, 2016 3:14pm
Quoting KyleSP
Many users says that big levrg have a lot of opportunities. But it's not correct. I you have big levrg, so you have many risks to lose your deposit. All US companies give customers 50:1. 500:1 and more - for pro-traders. I advice you to use levrg not bigger than 100:1 for beginning
So let's say you make 70% profitable trades with 500$ deposit and 1:1 leverage with good risk management and of course your account gains with for example 100$ per month. 100x leveraged with same system will grow to 10k p/m with small quantity of money and every successful trade will decrease the risk which comes with the big leverage.
So, my point is, what is the difference in risk coming with bigger leverage if you know what are you doing? If you are loser like the rest 90% you will loose everything with or without high leverage just in different time frame.
  • #40
  • Mar 1, 2016 8:11pm Mar 1, 2016 8:11pm
we need to be careful with leverage. Trading with leverage is high, it will benefit us, therefore we need to make the most use of leverage from the broker that will allow us to trade with the maximum. if trading with small capital so it is better to try to trading using high leverage
0 traders viewing now