@hanhwhitmore You must have heard that leverage is a double edged sword which means it has both favourable and unfavourable consequences. This is something that makes some traders choose low leverage and some to look for high leverage brokers. Take an example, let’s say you invested $100 in a trade and made 2% profit that’s only going to be $2. Now, if you carry the same trade with the same capital but with one of the high leverage forex brokers that offer upto 1:500 leverage. It will give you the ability to trade a position equivalent to $50,000 for $100. Making 2% profit on this trade would mean $1000 profit.
Same trade, same results, huge difference in the profits. That’s the power of using the best high leverage forex brokers. Highest leverage forex brokers offer you the opportunity to make higher profit than your initial deposit would have allowed.
But you too are not wrong, it can even turn against you and can prove risky. The problem is not the high leverage offered by highest margin brokers but the problem is not knowing how to use it properly. If you protect your trades with stop loss and take-profits, you can minimise the downsides of a losing trade. If you don’t employ risk management tactics, you are going to lose big no matter if you use 1:100 leverage brokers or 1:500 leverage brokers. I’m also looking for the highest leverage broker for intraday, will look into these options but could you share more names.