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  #41 (permalink)  
Old 03-14-2007, 07:05 PM
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I am not trying to prove any one person right or wrong. I would like more info for people who have a trade style that leverage would make a difference one way or another.

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  #42 (permalink)  
Old 03-14-2007, 07:10 PM
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Quote:
Originally Posted by rhodytrader View Post
If you increase your leverage you CAN increase your lots. At 100:1 leverage a $10,000 account can trade a $1,000,000 position, while at 200:1 you could trade a $2,000,000 position.

That doesn't mean you should increase your size, of course.

I will make this my second test. I have apposing views on this matter. I have no idea one way another.

rhodytrader, you are a wealth of help.

Thanks!
Last edited by pipgod; 03-14-2007 at 07:11 PM. Reason: grammer
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  #43 (permalink)  
Old 03-14-2007, 07:11 PM
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Leverage has only one purpose - to allow you to take on larger positions than you could if you were only using the money you had in your account. That's it.
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Old 03-14-2007, 07:50 PM
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Thank you. I appreciate that.
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  #45 (permalink)  
Old 03-14-2007, 09:59 PM
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Quote:
Originally Posted by rhodytrader View Post
Leverage has only one purpose - to allow you to take on larger positions than you could if you were only using the money you had in your account. That's it.
You forgot the other two nefarious purposes of leverage: to entice people into the world of forex and to confuse the hell out of newbies
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  #46 (permalink)  
Old 03-14-2007, 10:36 PM
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colin,

You are so right.
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Old 03-14-2007, 10:40 PM
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hey rhodytrader. thanks for the oanda tip. im lovein it.
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  #48 (permalink)  
Old 03-14-2007, 11:54 PM
 

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Thanks for your replies everyone! (Especially rhodytrader - I think I understand leverage a lot better now )
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Old 03-15-2007, 08:48 AM
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I know i have not been involved in this thread at all but i could not help but notice how complicated some people are making leverage out to be.

I must echo rhodytrader's thoughts on this. When using leverage it is absolutely critical that you know the effect in can have on both winners and losers, but that's about it. It's meant to give your buck more bang on both sides of the coin. Period. Nothing more nothing less. And FOREX just happens to be the best market to allow you to do it with most flexibility.

I don't think traders should dwell on it more than that. Think of your trades and calculate your position sizes in terms of percent of your account risked per trade and leverage takes care of itself. It really is that simple.

Someone once said: "Trading is inherently simple, getting to simple is what's complicated."
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Old 03-15-2007, 09:07 AM
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Quote:
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You forgot the other two nefarious purposes of leverage: to entice people into the world of forex and to confuse the hell out of newbies
Great point! LOL
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