High leverage , high risk?

[musicguy1967]

I posted this topic some time ago during my first time through the Babypips school and got some useful responses.

Leverage? Do you WANT me to die?!?!?

musicguy1967, you’ve gotten good answers from krugman25 and JonesCario. But, I’m wondering whether it’s clear to you which type of leverage you are asking about. If you are not aware that there are two leverages at work in every trade, then we have identified the source of your confusion. • Maximum allowable leverage – this is the most you are allowed to use. This is the leverage your broker advertises. Typically big numbers, like 50:1, 100:1, 500:1, even 1000:1. In terms of maximum allowa…