Thread: Does higher leverage lead to higher loss?

Leverage can provide you an opportunity to make some big profits but at the same time high leverage can also be really risky because high leverage can leads to big losses as well. So traders need to take the pros and cons of High leverage in order to create a profitable trading strategy to achieve profit targets.

High leverage can lead to higher losses. I've often get stopped out only because of the use of leverage. I think 1:500 leverage is pretty good for trading because, this leverage can maintain our margins for days. Now I sue this leverage in TenkoFx

Leverage is really good tool for individuals who are experienced in this market and are confident enough in their trading plans and are making some consistent profits in the market, it gives you an opportunity to make some big profits in the market but at the same time it also brings some losses as well because of high leverage.

Yes, it is definitely that way if we are lacking knowledge and then we try to use high lot size trade with high leverage then it is definitely not going to result into anything positive. If we use high leverage and correctly use it then we can definitely get extra ordinary results but with wrong use we could be in big trouble.

I love challenging trades, therefore my leverage is always the highest and with OctaFX broker, it is 1.500 which is out of this world for a Micro account holder and this is not the only thing that we get with high leverage but also they have great rebate system where we earn 15 USD per lot size trade so that gives excellent benefits for high lot size trade.

Originally Posted by Stephen Stills

Yes, it is definitely that way if we are lacking knowledge and then we try to use high lot size trade with high leverage then it is definitely not going to result into anything positive. If we use high leverage and correctly use it then we can definitely get extra ordinary results but with wrong use we could be in big trouble.

I love challenging trades, therefore my leverage is always the highest and with OctaFX broker, it is 1.500 which is out of this world for a Micro account holder and this is not the only thing that we get with high leverage but also they have great rebate system where we earn 15 USD per lot size trade so that gives excellent benefits for high lot size trade.

Lacking of knowledge will make us lose our money. In forex, we must have knowledge about forex and we also must understand what we've learned here. We also must understand the advantages of leverage which will help us to earn more profit although using small amount.

"Invite your friend, get $10 and win $5,000"

Obviously no matter what scenario we are in but if we lack knowledge than that’s the end of the discussion for most while I agree with Stephen that OctaFX is indeed a wonderful company to work with as they have various options that help us in learning and we can get our desire results while their system of low spread of just 0.2 pips, high leverage up to 1.500 is excellent for everyone if used proper and can make great profits.

Originally Posted by Ray Ramalho

Obviously no matter what scenario we are in but if we lack knowledge than that’s the end of the discussion for most while I agree with Stephen that OctaFX is indeed a wonderful company to work with as they have various options that help us in learning and we can get our desire results while their system of low spread of just 0.2 pips, high leverage up to 1.500 is excellent for everyone if used proper and can make great profits.

If we do not have enough knowledge in forex, how we can trade well here? There is demo account that we can use for learning, honing our trading skills to make us be more ready to trade in forex. ANd for leverage, try to choose the right one for us, i prefer use 1:500 in TenkoFx to higher leverage in other broker. It's enough for me "Invite your friend, get $10 and win $5,000"

It depends upon the individual trader because High leverage is an important tool and probably the most risk one because High leverage can give you best possible chance to make good profits and that's why it is an important tool but it also a risky one as well.

Originally Posted by Rahul247

It depends upon the individual trader because High leverage is an important tool and probably the most risk one because High leverage can give you best possible chance to make good profits and that's why it is an important tool but it also a risky one as well.

I think the new traders should consider the risk part associated with high leverages and be very cautious before investing using leverages, as then you might have to pay equally even if you make loss.

Yeah that is another important factor because newbies in this market as really emotional to some extent and if they use high leverage they need to take into consideration and that is High Leverage because it can give them chances for profits but also losses as well.