Forex How important is Leverage in Forex Trading?

[moonchild]

If we are to trade with our own personal funds and use 1:1 leverage, trading wouldn't be possible for many of us, because it means you'll need thousands of dollars to be able to open a single position with your broker, but with the help of leverage you can open a position with as low as $10, that's the power of leverage.

As a trader, how often do you use leverage and how does leverage help you in your trading, I use leverage to open large trades on my account if I know it's going in my direction, I fail sometime and lose money, but when it goes in my direction I make more money, it's not advisable to do, if you don't have expertise because you might lose the account.

 

[FinTrader]

I use a little leverage when trading. This allows me to trade with risk control and I do not worry about losing my deposit in case of unsuccessful transactions.

 

[FXOchartist]

High leverage drives higher profits because traders can use lower margins to trade with larger position sizes, but like a double-edged sword, high leverage also carries higher risks. Different brokers may have different leverage offered, at FXOpen UK for retail traders the leverage is only 1:30, and 1:500 for professional clients. At other brokers, it may reach 1:3000.