Quote:
Originally Posted by trav72
Here you are basically saying your draw is dependent more so on how many lots opened not leverage.
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It is not confusuing and there is no darkside!
it is just your deposit % for your position.....Thats it!
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Well based on all that information, I will check over my spreadsheet and see if the calculations agree with the way you explained it (if not, the spreadsheet is wrong, not you
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But then why do people say that leverage is the most dangerous part of forex .. go around this board and you will find people saying that all over the place .. "dangerous" to have high leverage .. you can end up owing more than your account value (with some brokers) .. is that because with higher leverage, people start taking greater risks, like putting on 40 positions when they should only have 10? Rrram says it is not leverage that is the problem but margin use .. so if you have 400:1 leverage and are 40% into margin, that is much riskier than having 100:1 leverage and being 40% into margin .. is that it?