Thread: Does higher leverage lead to higher loss?

I want us to discuss whether using high leverages like 1 : 1000 and 1 : 500 etc will bring about high losses in forex

It's depend of the strategy. If the win ratio of trader's strategy >70% and they use good MM, I think 1:1000 can better than 1:500..

all depends on the trader's money management as well as the level of discipline. High leverage for some traders can be profitable, but it will be dangerous for others.

Many professionals avoid the use of a high leverage in trading the market. It is often quite risky to use a high leverage especially in a market you don't control but it can be good for small accounts.

If you are an experienced trader then leverage is good, but yes high leverage is risky for inexperienced traders, you really have to know how to use leverage.

Indeed it will generate higher losses if using higher leverage, that's why I prefer to use 1:100 and most often I only use 1:50 to minimize my losses just in case my trading analysis doesn't go with the current trade. But of course if you have set your risk management then have it your way.

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it depends on the individual trader. If a trader can trade using high leverage can manage it well, but it will get the maximum results. the key only in MM, RM and discipline. but I prefer to trade with a leverage of 1:500 of tenkofx

Originally Posted by CahCuncun

it depends on the individual trader. If a trader can trade using high leverage can manage it well, but it will get the maximum results. the key only in MM, RM and discipline. but I prefer to trade with a leverage of 1:500 of tenkofx

But a trader should be experienced in order to make use of it, many new comers are lured by these leverages and end up making loss.

Originally Posted by fxapex

But a trader should be experienced in order to make use of it, many new comers are lured by these leverages and end up making loss.

We must improve our trading skills if we want to get more maximal result. Leverage must be maximized as well as possible. We must be wise in using leverage. LEverage can help us when trading, but it also can make our capital will lose here. I prefer to use leverage 1:500 from TenkoFx to trade. because it's not too big and not too small for trading. Be more than a trader, be a TenkoTrader

Originally Posted by fxapex

But a trader should be experienced in order to make use of it, many new comers are lured by these leverages and end up making loss.

I think the real risk for losing comes not from leverage but from lot size and strategy, as well as a bad money management, because if you are sticked to your own rules of money management you can use 1:500 leverage without problems. now i using this leverage when trade in Armada Markets