There is no doubt about the double edge of a leverage sword but I see it as a benefit. Just imagine if you have to trade the gold in actual market at actual price you will not be able to trade much. With this leverage you have the ability to trade much more gold than real.
The way I see leverage is it is no different to borrowing money from a bank to buy a more expensive house than you could otherwise afford thereby using the banks money to trade in the real estate market. Since the house is in your name you(and the Tax man) keep the benefits(minus a small fee to the bank for the opportunity…interest). let’s say you have $50,000 deposit for a house and borrow the rest from the bank to buy a $500,000 house, your leverage is something like 10:1.
With a low risk trading plan and leverage you are fulfilling the age old trick of the wealthy of using “other peoples” money to make your own.
Of course the major caveat is it must be a sound investment, for the most part real estate is fairly low risk while depending on the individual forex may or may not be.
In time I hope to use leverage to my benefit but I don’t think it will be anytime soon.
Not to forget that the leverage is a double edged sword and we all should use it for our advantage and not let the leverage to take advantage of our emotions.
Newbies should not use leverage, this is for those who have the tendency to win at least 60% of their trades!
I don’t know, but for me leverage is something that makes you fill more comfortable in the new condition of forex market. Like I’d never start my actual account putting there 3 000 bucks so the trading would be boring :eek: earning 10$ a week. If you’re smart and careful enough the leverage is only an instrument that helps you stand on the feet.
Leverage is good option for traders they can trade more using their less amount in trading. It is like a loan we get from broker. It should be tried in a manner where you will manage your margin easily . High leverage can be dangerous , it eats your capital quickly.
leverage trading is very tempting… it is nice when it works out fine, but when you loss the trade it is assumed that you ve d took the red pill. so it is advised that you don’t go into it… Thanks folks good luck