Leverage is necessary.

Discussion in 'Forex Trading' started by Willem Janssen, Nov 14, 2017.

  1. Leverage is necessary for forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. My broker offers high leverage facility 1000:1. I used leverage very wisely and trading happily with them.
     
  2. andengireng

    andengireng Member

    Yes, leverage is necessary but be careful with Broker that offer you more than 1:1000, this broker is a scam, they are not regulated and they just want your money, for example Exness, Exness offer you 1:3000 leverage, please be careful, the maximum leverage from regulations is 1:1000
     
  3. Md Sayon

    Md Sayon Member

    Leverage in general terms simply means borrowed funds. Leverage is widely used not just to acquire physical assets like real estate or automobiles, but also to trade financial assets such as equities and foreign exchange. We mostly prefer leverage while choosing a broker. Because those who are scalper and like to hedge sometimes they use to broaden their lot size with a view to earn huge money within a short time. With Trade12 I have flexible high leverage which varies from account to account. Though I am using micro account so I have the high leverage like 1:400 through which I can exceed my initial capital.
     
  4. aditigupta

    aditigupta Member

    By leverage it is meant trading on borrowed fund. Relying too much on usage of leverage is never advisable , to certain extent you can depend on it. And it totally depends on your risk bearing capability and trading goals.
     
  5. radex78

    radex78 Active Member

    Leverage is necessary, trading without leverage might as retail trader can take part in forex business, but with leverage we can start with small margin requirement to open trading, but now broker offer high leverage until 1:1000 and might this can become risky if trader tendencies to become greedy
     
  6. As a trader we have to understand first of all the basic of leverage ratio so that we can trade with a particular money management to get rid of the margin call, for that we have to be very much experienced with the basic knowledge related to the Forex field.
     
  7. radex78

    radex78 Active Member

    If you using high leverage and only have small capital, using smallest lot size it could possible on your equity has negative balance, because get margin call, and this may occur because trend market move rapidly and order against these trend might on server broker occur freeze
     

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