Assuming there is no opportunity of using leverage in Forex meaning you can only trade with amount you’ve in your account and no leverage to increase your trade volume- will you still trade Forex considering the risk yet no leverage to give big profit on small investment
What you think is it more profitable or not?
Well, leverage is what makes trading so attractive. Without it one would need a lot of capital to even learn, not to talk about making a living from it. So if we had no leverage trading would be difficult for most people. Indeed it is precisely because of the increase in the leverage offered by most brokers that forex and other financial markets have grown so much.
So to answer your question: maybe not!
Absolutely NOT
You would need hundreds of thousands of dollars to trade without leverage.
Hi.
One of my all time favourite topics!!!
The answer is pretty simple really:
If you’re able to discipline yourself and not overtrade your account and manage risk??? Then leverage is the best thing since sliced cheese. Problem??? The statistics show that most retail traders are unable to discipline themselves, overtrade their accounts (because they CAN because of leverage), and don’t manage risk. NO leverage, in a roundabout way, FORCES you to be disciplined, makes it ALMOST impossible to overtrade your account, and FORCES you to manage risk. NO leverage: ‘if you cannot pay then you cannot play’. And one could extrapolate further from this. As but one example: could one reasonably expect to start a business, with $1 000, and turn it into a multi-million dollar business within a year??? The answer, for the most part, is no (there are VERY few ‘Facebooks’ in this world). NO leverage is no guarantee of profitability. That’s for sure. So don’t try to relate leverage and profitability. But NO leverage will make it that much harder for you to lose your shirt!!!
Regards,
Dale.
You really don’t understand this gig do you?
I think I will not able to trade in forex market without leverage because it will need a huge amount may be in thousands to do trading . We can not trade just with$ 200 as normally traders start their career with low investment.
But even with thousands of investment we’ll still be able to earn very little according to our efforts and time consumed. So its a not-trade-able situation with leverage for retail traders.
There are so many ways to trade that it is impossible to say what is the ‘correct’ way of trading, but having too little capital is certainly not giving you a chance to even survive long enough to know if your leveraged strategy is working…This website is littered with defunct threads with titles like ‘My journey from $10 to $1000000’, which are exactly proof that leveraging on too small an account is too big a gamble for most and they will end up in the traders’ graveyard.
If you are disciplined and conservative with your leverage but only have, say, $100 in your account, you may have to wait decades before your returns, even if incredibly smooth and consistent, will amount to much that would pay you back for those thousands of hours spent learning the craft of trading…hours that would be better spent doing something more rewarding…
So the answer is: capitalise yourself enough that you can choose to apply small leveragr but make decent returns without having to go crazy (like trading ten lots with a $100 account…yes, I heard stories!)…
For being profitable with tiny account you need to have 20x to 40x in leverage and gamble it thats it
Ah, if only we had all known that…
[QUOTE=“PipMeHappy;778879”] Ah, if only we had all known that…[/QUOTE] knowing it is not enough just need to remember if its been forgotten for every time and then with these threads Re-commenting it wouldn’t hurt
Threads are become so similar and answers too
I am not paid to sit here and repeat the same answers so.I can choose when.not to…
It does.no.credit to newbies to not bother using the search.button, it is lazy and it causes exactly what you said, namely for ‘threads (to) become so similar’.
[QUOTE=“PipMeHappy;778884”] I am not paid to sit here and repeat the same answers so.I can choose when.not to… It does.no.credit to newbies to not bother using the search.button, it is lazy and it causes exactly what you said, namely for ‘threads (to) become so similar’.[/QUOTE] Searching box it will bring the newbie to old (cough)(cough) threads . Might be they think ,they dont get the answers from online members thats why for getting engage faster to the forum they create fresh threads. I think babypips must limiting the threads for newbie and bring up some threads sticky them to the top of the forum Actually most of newbie quickie questions can go in only one thread
Ps: you and other selected bestie members must get that crown sticker on their avatar
I agree with you 100%… It would work so much better
[I]You don’t need any helping hand, if you are confident and proficient enough[/I].[B] If you are a successful trader and have a good experience in Forex, you will trade even if there is no leverage.[/B] [I]As you sow, so you reap[/I]. Account with no leverage is your real performance. You can keep on adding profits to your account and keep on multiplying your balance. Account with low leverage is slow and steady wins the race. [I]But you will win definitely, your success can’t be dependent on only Leverage.[/I]
It’s a kind of self-fulfilling prophecy, arguably, in that the only people who are trading (or who would want to trade) forex without leverage are financial institutions with enormous capital assets, and they’re to all intents and purposes a selected group of “successful traders with good forex-trading experience”, by definition and by survivorship-bias.
Without in any way detracting from your entirely valid observation that success can’t be dependent [I]only[/I] on leverage (because obviously one has to have a genuine edge, in the first place), I don’t really agree at all with the comment quoted just above: it seems to me that the only retail spot forex traders “winning the race” are those using leverage: the reality is that retail traders with a true edge and the relevant risk management skills wouldn’t [I]dream[/I] of trading forex without leverage. Indeed, the ones trading spot forex (rather than other instruments) are typically doing so [U]specifically because of[/U] the availability of high leverage.
I have to invest more than I had now in my capital because leverage facilities me to do trading with less investment . I have to collect a huge amount as a capital to interact with market if there is no leverage.
I think forex is popular due to leverage , if there is no leverage forex will not easy for all people to join. Only high investors can work here. For small investment without leverage trading is too difficult . However one should use proper leverage not higher one so that he did not take full risk of his amount.
Trading without any leverage will be impossible for most traders and as mentioned in the previous posts, only institutions could be able to afford it. Or if you are a millionaire who feels confident enough to do it without hesitation. But I am sure that this is not the case with the majority of people. I think that even the lowest leverage would be better than no leverage at all. But every trader has to decide for himself which level would be the best as like lindholmgustaf said the higher the level is, the bigger risk it carries