Small or high leverage which one to choose

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Robert Hills

Active Member

• Aug 29, 2021

• #1

Small or high leverage which one to choose. It depends on the individual trader. Some prefer to trade using leverage small or large leverage. But if traders are trading with small capital it would be better if they could try to trade using leverage large. To do that traders need proper trading strategy and plan. In my case, I learned it from my broker free educational resources.

 

Last edited by a moderator: Aug 30, 2021

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lilmoab

New Member

• Aug 31, 2021

• #2

traders real only use large leverage to grow small accounts but even with large leverage u can still use proper risk management really dont matter

 

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tonendless

New Member

• Jul 1, 2022

• #3

It depends on your portfolio size. If you use high leverage, you should trade smaller lots.

 

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5starfx

New Member

• Jul 2, 2022

• #4

Robert Hills said:

Small or high leverage which one to choose. It depends on the individual trader. Some prefer to trade using leverage small or large leverage. But if traders are trading with small capital it would be better if they could try to trade using leverage large. To do that traders need proper trading strategy and plan. In my case, I learned it from my broker free educational resources.

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Hello. What is the name of your broker and what are the requirements to get free education from your broker?

 

Mobey_D

Member

• Jul 2, 2022

• #5

Horses for courses. There's not one answer to suit everyone. I prefer high (ie. 1:500 on forex). Just use micro lots.

 

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Charles Agustin

Guest

• Jul 6, 2022

• #6

Truly, random and unkempt trading is loved by traders but they can’t feel how harmful these type of trading s for them. It bears no fruit for them ultimately. It is just out of the strategy-based trading. So, traders should not be fooled by randomness. Traders should focus on disciplined trading as much as possible.

 

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Multisulcate

New Member

• Jul 21, 2022

• #7

Leverage can be highly risky to use if the trade doesn’t know what he is doing. It is a good idea for newbies to trade leverage on a demo account and check how leverage trading works. And then he can start with minimum leverage on his real account.

 

HeavLeighGill

Member

• Jul 21, 2022

• #8

Beginners always need to stick with low leverage. More experienced traders may be able to handle larger leverage well, and it's always nice to have the option, but it can also blow accounts so people need to be very careful with it. A lot of professionals use 1:100 leverage.

 

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mjs2010

New Member

• Jul 21, 2022

• #9

Robert Hills said:

Small or high leverage which one to choose. It depends on the individual trader. Some prefer to trade using leverage small or large leverage. But if traders are trading with small capital it would be better if they could try to trade using leverage large. To do that traders need proper trading strategy and plan. In my case, I learned it from my broker free educational resources.

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Does a bigger leverage always equal more profit? Like in comparison how much difference would it make between 1:100 vs 1:500?

 

cjsabu

New Member

• Jul 22, 2022

• #10

My view is if you are new to trading, start with low leverage (1:100 or1:200) with a nano or micro account and increase it as you gain more confidence with trading.

 

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Mesology

New Member

• Jul 25, 2022

• #11

High leverage might not guarantee high returns always. In fact, it might result in the opposite. It is only for seasoned traders. Beginners, however, who want to use leverage, may consider small leverage to avoid huge losses.

 

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dark005

New Member

• Jul 25, 2022

• #12

To me, it doesn't matter whether it is low or large leverage, but the key is your risk management. Without it, you're just gambling in the market.

 

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Hipparchy

New Member

• Jul 26, 2022

• #13

cjsabu said:

My view is if you are new to trading, start with low leverage (1:100 or1:200) with a nano or micro account and increase it as you gain more confidence with trading.

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True. A bigger leverage means more profit. But it also comes with higher risk. If the market volatility increases unpredictably, it can lead to heavy losses.

 

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Siphonic

Member

• Jul 29, 2022

• #14

If a trader knows how to use high leverage along with good risk management strategies, a trader might save them from potential losses.

 

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onomatopoeia

New Member

• Aug 2, 2022

• #15

Leverage would be beneficial for you when you are skilled enough to choose profitable trades and have a good winning streak. I won’t suggest a novice trader to trade with leverage as they might end up losing more in the process. Leverage also adds up to the risk and we must be careful while using it.

 

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Chorology

New Member

• Aug 2, 2022

• #16

Choosing high leverage over small leverage can be a difficult decision, but it ultimately comes down to what is best for your individual needs. High leverage can provide you with more opportunities to make profits, but it also comes with a higher risk of losses. Small leverage, on the other hand, can help you to minimise your risk, but it may also limit your potential profits. So, the decision of which to choose depends on your own risk tolerance and investment goals.

 

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Agynary

New Member

• Sep 23, 2022

• #17

It is important to choose the leverage wisely. Leverage can enhance the risks of losing with the same intensity it increases profits.

 

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InnerMarshal

New Member

• Sep 29, 2022

• #18

Leverage needs to be focused upon as it can make huge profits or make one suffer huge losses at the same time. So, it is crucial to choose the right leverage. Beginners need to keep an extra vigilant eye on their leverage.

 

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Macromania

New Member

• Oct 6, 2022

• #19

Unless one is highly experienced and extremely confident about his/her strategies, high leverage must be avoided because it can lead to huge losses. Also, when trading using leverage, one should implement risk management strategies to manage losses or avoid the account from blowing up. Keep in mind that high leverage is only for experienced traders.

 

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Quibble

New Member

• Oct 7, 2022

• #20

There are a few reasons why you should use small leverage rather than high leverage. High leverage can lead to large losses if the market moves against you and can increase your risk of a blow-up. Always use strict risk management while trading with leverage.