Is 1:500 leverage bad for small account?

[Victor01]

Hello guys... is 1:500 leverage bad for small account!? Can it be a reason to blow account?

 

[eromawyn]

Having leverage is never bad. Taking too much risk because you have a high leverage and don’t know anything about risk management might however lead to blow your account.

In other words : it’s not bad, doesn’t mean it should be used.

 

[Abee]

It's good and bad. If you win it's good but bad if you lose

 

[luda]

In times of high probability trade setups with lower risk, I don't see it a problem. Infact all the legendary traders did leverage a lot when they got into this kind of setups.

 

[malesa0102]

Hello guys... is 1:500 leverage bad for small account!? Can it be a reason to blow account?

yes it is bad for small account

 

[Paapaa]

Find a percentage of your Bank that you are comfortable working with and stick with it. Making good decisions on which trade to take is difficult enough but throw in worrying about losing your bank!!!!! Ya'll simply burn out and never enjoy the business.

 

[Rufino Fiorentini]

Leverage is like two edged sword in forex market my friend. It might help you to take bigger lot with small amount but it is also quite risky. Even I trade at 1:500 leverage with Eurotrader. But one think you must consider while using such leverage, you must need to follow proper money management and risk-reward ratio on each trade you take on the market. Otherwise there is a high chance you can blow your account.

 

[shadyo101]

Well my advise run a low lot size so you don't blow your account

 

[zangar]

It's good average. In my opinion it does not matter because the money management and risk management is based on your equity so you should not leverage more than your risk tolerance.

 

[Berndt van Deventer]

Hello guys... is 1:500 leverage bad for small account!? Can it be a reason to blow account?

i wouldnt trade using 500 leverage if i was a beginner forex trader,you would blow your account in seconds,unless you have good money management and a profitable trading strategy ...otherwise you would be good to trade 500 even 1000 leverage

 

[GEKKO13]

Hello guys... is 1:500 leverage bad for small account!? Can it be a reason to blow account?

Honestly it all depends on the strategy your using and what your trying to achieve for that specific account. Generally speaking you need to consider your success rate of the strategy you intend to implement. Thereafter you need to also take into account your initial capital and money management strategy. Ideally you would want a high success rate trading strategy with low risk.

 

[shadyo101]

i wouldnt trade using 500 leverage if i was a beginner forex trader,you would blow your account in seconds,unless you have good money management and a profitable trading strategy ...otherwise you would be good to trade 500 even 1000 leverage

Thanks so much for the advise mate

 

[reborn41]

1:300 is the best becoz uaing higher than that will put your account into risk of being wipped within seconds

 

[flackofx]

Hello guys... is 1:500 leverage bad for small account!? Can it be a reason to blow account?

Yes it can blow your account, keep in mind with high leverage you can make alot of money because your margins are small, which means you can take many trades but if the trades go south then you will blow your account!

 

[Deemsfx]

Nope! what is bad could be how much you understand your trading strategy and your money management skill.

 

[RomyBromy]

Would be the spread or the comission of a 1:500 levarege different from an (for example) 1:50?

 

[RAFIQ0007]

If you win very good if you lose very bad

 

[wishclusive]

i think you can try the $20 challenge growing a small account

 

[doe123284]

double edged sword, the lot size will also determine how long the trading account survives.

 

[RaxXxz0r]

Risk Management is key! If u are conistently winning and/or can afford a big loss then its aight. But if u arent or havent both of these its not recommended.