What is true leverage in Forex trading?

[darexgeorgieviya04]

Can anyone tell me what true leverage is and the benefits of true leverage

[PALM]

I’m not sure what you mean by true leverage. But my understanding of forex leverage is:

For every dollar you put up, your broker will loan you fifty (1:50).

But if you increase your leverage to 1:100, instead of being allowed to lose $50 on a trade, you’re allowed to lose $100, thereby blowing your account twice as fast.

[sashavich04]

Leverage is a double-edged sword, as suggested above, but its also the thing that makes short-term trading worth the risk. There is no point trading short-term with no leverage. BUT the risk is you end up with no money in your account.

[Sendo12]

It actually depends on the level of risk that you are willing to take. I agree with PALM on settling for 1:50 -- I think it's a safe zone. But if you think you can handle a little higher risk, then feel free to do so. Besides, higher leverage also allows opportunity for higher profit. But then again, remember that the same goes with the risk.

[Aya]

A leverage is like a loan that you get from your broker. So in order not to be deeply indebted, avoid going for too high leverage.

[Trader_Rob]

I personally don't use the leverage that my broker provides because I am still not that confident with my skills. I am still a little afraid I might make a mistake and lose a huge amount of money.