Most traders like high leverage because we do not cash capital within our buying and selling account that's the reality. However it can not be dangerous whatsoever when we will used just proper management of your capital rather than do over buying and selling.
i guess my dear the kind of people who use this higher leverage use it for good chance and trusted on them self and those people had more than 4 years experiance on forex and know how to analysis the market
i think high leverage is not an issue it just provide us to trade more positions but it all depends on you how you manage and if you open lot of positions and with biglotsizes then account will easily burst when reach you are losing a trade
For the beginners like me the larger leverage is useful. As I am not intended to load so much of money in this business for getting started with real trading, therefore, 1000 leverage is good for me.
Every clever trader will understand that high leverage is never bad for them if they just don't want to misuse it.
You will have more free margin with high leverage like 1:1000 than low leverage. If you know the risk, why you will misuse the benefit of high leverage?
Some traders like me want to trade with big volume during market news which is not possible with low leverage and low balance. I have more than one account in instaforex, I take 1% risk per trade in one account and even 10% account risk in one account (mainly for scalping). Let, you want to open a trade during a news and you want to risk $20 in it. If you plan to use 20 pips sl only with 1:1000 leverage, you may open 1 IFX lot (1 IFX lot = 0.10 standard lot) trade with just $20 deposit with 1:1000 leverage. Its never possible with low leverage.
With this condition if market goes only 18 pips against you, you will loose the account. And if market goes 100 pips in favour of you, you will gain $100 with just $20 deposit.
Since you know the risk, its on you if you will take the facility and risk of higher leverage or not. If you know the risk, use high leverage and after loosing the account balame the leverage, its totally a foolish job. Higher leverage is an extra opportunity for some traders who want to use big volume in some market conditions with lower margin. If it don't suit with you, just don't use high leverage.
Assume you have a 1:1000 leverage account, do that mean you need to open every trade with 1 lot or higher? You can open a trade with 0.01 lot also. So, in any sense I don't find higher leverage can be bad. It just depend on traders mentality. You can change your leverage any time in instaforex account.
same with you, i also using high leverage because i ony have small capital, when using big leverage with small capital we can trade like have big money in account, so i using 1000 leverage in my accountOriginally Posted by aina
high leverage just increases your buying power. it actually is lower risk compared to a 1:50 leverage. im not too sure how this work, but when i was selecting my leverage, instaforex was saying that if i were to choose a lower leverage, the chances of me facing a margin call is higher.
true what you say that the high leverage could make us increase our purchasing power to the market so we will have the opportunity to maximize your trading capital that we have
Agree...high leverage is never the issue. It's how the trader managed his trading account that put it on danger. High leverage is beneficial for traders with small capital.
My life sucks....how about yours...?
as long as you're still using a small capital, then I believe that low leverage is very useful for you, at least it will provide many benefits and not just profit and loss section only
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