what can you say on leverage ?
It really depends on how you use it - it can be either.
High leverage can help you gain more profit but also could be very dangerous as a sudden price movement towards the other direction could be a disaster for your balance. Specially if you have a low balance and very high leverage.
the action of a level, a rigid bar that pivots about one point and that is used to move an object at a second point by a force applied at a third
Leverage is like as double edge of swords, if we use wisely hence will useful, but if we use recklessly hence will harmful, currently some broker offer high leverage, and with small margin trader can boosting profit but also boosting the risk also
Really, again??? Is the search function broken???
- If you know how to use it –it is all that you need.
- If you don’t - your worst nightmare
- if you think you do know, but you actually don’t – even worst.
- if you do not operate with a small account and a HFT strategy – a thing you most probably do not need at all.
- if you want to build a wide portfolio hedged across multiple instruments and asset classes but your account is relatively small - than with the help of the leverage you can decrease instead of increase your risk…
it is like a weapon it depends who is holding it…