i have seen majority of us for all time consider high leverage as high risk ? i want to know guys your personal opinion. i hope you all enjoy this topic
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well, i’m still learning, but wouldn’t it be high risk because you freeze up your margin? i feel like you’d be asking for a margin call if you’re not managing how much you have to leverage against your trade.
Yes, the risk was always well paid, because the trader risks his funds. Therefore, the expression “high risk is well paid” works.
High leverage is not a risk. It is just high leverage meaning you have the ability to take larger positions. The high risk lies with you personally and how big a position you take or risk per trade.
For eg a mortgage is not risky, it’s just a mortgage. What’s risky is how large a mortgage you apply for and the interest rate.
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its very complicated question to answer , because its related with money and risk management , you cant ignore at any point , even still i am confused which logic i am writing.
This is where the double-edged sword comes in, as real leverage has the potential to enlarge your profits or losses by the same magnitude. The greater the amount of leverage on the capital you apply, the higher the risk that you will assume.
ratio is really a good fact basically new comers level , otherwise leverage is profitable or risky it depends on your trading approach and money management.
honestly speaking i always scare about using high leverage , generally i use low leverage ratio but in demo i always use high leverage to see the performance how it works.
high leverage not risk at all , if there is any risk it is completely with zero risk management with poor trading plan,
This is wrong. Just because you have a high leverage does not mean you will assume a higher risk. Just think about what you are saying. If I have an account with 1:1000 leverage but I don’t trade then I do not assume any higher risk. If I only risk 0.5% a trade I do not assume higher risk.
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I’m more comfortable using higher leverage, although I won’t go over 1:500. It depends on your trading style and money management as well. With higher leverage, less margin will be required to maintain your open positions, easier for me to control my trades.
I’m more comfortable using higher leverage, although I won’t go over 1:500. It depends on your trading style and money management as well. With higher leverage, less margin will be required to maintain your open positions. So it suits me, cause it will be easier for me to control my trades.
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Sure! And you will have to pay for any risk …
yes , which leverage is more appropriate for you it depends on your trading style and money management , if you have both i think by using leverage there is a chance to bring profit very rapidly by high leverage.
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high leverage ratio maximum time contains high risk, i think without stupid there is no one who can avoid it. in spite of having most powerful analyzing trade management there is a chance to get loss when using high leverage.
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If you are new in the market than you should keep the leverage low because high levrage is equal to high risk and you can gain high profit as well as high loss.
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Amplified risk, not necessarily high risk. Here is my take…
Leverage increases the consequence of losing. However, reducing leverage makes the market less accessible, and that is undesirable in my opinion. Instead, take responsibility by managing risk properly.
Components of risk management are likelihood and consequence. We established that leverage increases risk by increasing consequence. Then, one can reduce likelihood by educating oneself about the workings and of the market, technical analysis, basic macroeconomics, and gauging market sentiment; then by combining these into a measurable, repeatable, and testable system one uses in a disciplined way. One can also reduce the consequence by managing lot sizes and stop loss orders responsibly and setting realistic profit targets.
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the higher leverage can magnify your profits and losses by the same degree. with higher leverage if you’re having big profits, you can have big losses as well therefore, the higher is the leverage, the higher risk you’re taking.
As a newbie I agree with those that basically said that Leverage has absolutely nothing to do with Risk. Leverage are given to you, Risk is what you manage.
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Yes I do believe high leverage means high risk,especially for those who are new to trading. Use as less as you can until you’re sure about it.