Why is high leverage a concern if stops are in place?

From my understanding, the reason people refer to using higher leverage as having higher risk is because people are using that higher leverage to open larger positions with the same amount of margin.

If we want to deal in our trades and keep a Low risk profile along with a Low leverage then we can easily do that.

Here we have to just know and understand the facts that trading is like a business.

So if we will take our decisions clearly then we will see the profits also coming to us :slight_smile:

If stop is too close, no room for drawdown. What’s the point of high leverage? Do you know purpose of leverage?

Leverage has to be used by all retail traders as their capital is not big enough to trade without it. But using high or low leverage is one thing that is in a trader’s hand. You can use low leverage if you are not very good in your money management. But using high leverage does not bring any danger to your account unless you yourself don’t opt to lose high lots.

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