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Thread: I dont seem to understand leverage

  1. #1 Collapse post

    I dont seem to understand leverage

    Can someone give a good read on risk, leverage, money mgt?

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  4. #2 Collapse post
    In laymans term, it is simply known as a loan. We have to think twice before we borrow money. Leverage is indeed good, assuming that we make money on whatever we take, the problem only starts if the price of the trading currencies we buy fails to perform well. The broker will instantly issue a margin call, requiring us to settle our debt or close the position. We left nothing once we closed our deal.

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  6. #3 Collapse post
    Trading with leverage is a thing that requires a trading approach with reservation, and discipline to avoid a complete liquidation. Leverage is all about lending money from an exchange site or broker. Most traders do not use leverage more often because it carries a big risk.

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  8. #4 Collapse post
    That is the true meaning of leverage. And that leverage we see, is very risky.
    As for me. I use leverage 1:100 . The risk is low when you use hundred leverage

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  10. #5 Collapse post
    Quote Originally Posted by Mcjerry001 View Post
    That is the true meaning of leverage. And that leverage we see, is very risky.
    As for me. I use leverage 1:100 . The risk is low when you use hundred leverage
    Investors more often use 1:100 leverage as it carries only small risk.

  11. #6 Collapse post

    Leverage

    Leverage a simplistic analysis is having the ability to do more with little.
    Imagine having a your party with all your friends in MacDonald with all the drinks and food and left over and the attendant asked you to bring just a 100 dollars as your bill,you will be shocked right, just a 100 buck for everything. A leverage in trading allows you to do more with little, again you have 5 trades to execute by 7 am and you are using 2 lot size per trade and you have just a 50 dollars on your account, you broker will stop the trade and only executed a few but if you have a leverage of e.g 1 .200 you can achieve all your trade, so leverage is the power to do more with little, but pal you have to be careful becauseas you now have the power to do more so it could rusticate your account if a trade goes against you. Cheers 🙏

  12. #7 Collapse post
    A higher leverage will allow you to open positions with larger lot size even with low capital. With that, you are heightening your profit chance as well as the risk of losing. So be careful when trading with leverage.

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  14. #8 Collapse post
    Correct. It is like you're injecting your account to remain afloat and pump more money.
    Last edited by Mr. Cid; 05-28-2020 at 04:14 AM.

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