I dont seem to understand leverage

[Marcellus]

Why? I think its very good option for scalper so always try to grab highest amount. If you want to get 1:2000 ratio then can use FreshForex broker cause currently they are providing maximum amount for pro and scaling account.

[Iimlim]

Wow good to know that

[Njoki]

Okay just as @Wekesa has stated , then there is a high possibility to which one can get some good money with leverage, how ever there is a huge down fall to it, you can actually even lose more to it the more you risk the more you have the possibility of losing it all, if you look at how this kind leverage works, it depends on what we have, if I have 50 dollars and use a leverage of 1:25, then for every one dollar , I can get about 25 worth of margin, which means with 50 I get 1250$ worth of margin, but when things get rough , you lose more and when you gain you gain more so its either way you can win or even lose more, thats the case.

[Wekesa]

Okay leverage is the power to increase your purchase value, okay what do I mean if you have a deposit of 100 dollars , that amount is so little to buy bitcoin , good enough to give you returns, what do I mean you buy bitcoin worth 100 dollars and it increases by 20 percent , you get around 2 dollars or something because even though its as low, but look at it this way , with leverage you can be able to go as high as to purchase , worth about 10,000 dollars and thats it, be sure to include a good management skills because then is when you lose when things go south

[Trader_Rob]

At first, I also can't fully understand leverage. Whenever people say that a broker offers high leverage, it is often meant to be a positive feedback. But now that I know what a leverage really is, I realized that getting a high leverage does not always mean that you would earn more. Because linked with it is the risk your taking.

[Aya]

I thought before that having a higher leverage is a good thing. I did not understand back then that I am also risking more with high leverage. Now, I only use 1:100 just like most investors. I believe this is also recommended for beginners.

[Mr. Cid]

Correct. It is like you're injecting your account to remain afloat and pump more money.

[Sendo12]

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.

[Tekasky]

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 🙏

[AbdulShiek]

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.