Small leverage is safer than high leverage

[Ivo Zetticci]

Small leverage is safer than high leverage. Because it prevents traders from becoming greedy in trading. However, leverage depends heavily on how well the trader can trade. Traders also must choose a broker that offers the lowest trading spreads, such as Eurotrader. My broker also offers 5 types of accounts including swap-free accounts with tight spreads, 24-hour live support, and many more.

 

[btaliat]

Each trader has different aims at objectives while trading. While some trade to make it big, some believe in small and steady gain. I know someone who uses the least leverage because he's scared of losing all his money through liquidation. And I have a friend that always uses the highest leverage saying that it is either he makes or big once and for all or he loses big once and for all.

 

[Kingstone]

Sink or Swim my mentor says. It's either you go in fully and you make a profit or you drown and you lose all your funds. I have learned from the best to the least. The best is to know what is working right for you. High leverage with small pips target will make you earn your money quickly while small leverage will make you want to target more pips and the market can reverse before it is achieved. Stick to what works for you

 

[Setho]

As the name and the situation is going to imply you are definitely going to be doing yourself more good if you are going to stick to a lesser leverage and then be accumulating the small profit over time. This is because in as much as you can be able to increase your income with leverage it also means that you can be able to reduce your portfolio size as much and that is definitely something you will want to avoid especially as a beginner. You should always try to go for the strategy of using a bigger lot size with a small leverage.

 

[Jack Reacher]

Scam brokers provide alluring packages to traders so traders comb on those packages by opening accounts with those brokers. Traders must be very much careful about selecting brokers. But I have been with Eurotrader broker for a long time and this is really a scam free broker. It’s a FOMC-regulated broker.

 

[Electuary]

One of the most typical mistakes made by amateur forex traders is to use an excessive leverage ratio when making trades. We advise you to trade with a smaller ratio until you gain more experience.

 

[cashisking149]

High leverage is only dangerous if you abuse it. It isn't dangerous in of itself

 

[FXOchartist]

It's depends on your choice, indeed small leverage prevents traders from greediness in trading, when we want open bigger lot size small leverage need higher margin requirement and small number capital not enough to open it. Small leverage suitable for trader who having big capital, while high leverage small capital still possible to open trades.

Personally I am often works using leverage 1:500 this is highest leverage offered in my FXOpen broker, maybe this is inclcuded high leverage, but as long as we can control trading, it is still comfortable to use high leverage.

 

[Suba]

High or low leverage will certainly affect the risk, with their trading experience it is hoped that traders can be wiser in choosing the level of leverage that suits their abilities and comfort. To my knowledge, many traders with large and experienced capital prefer small leverage, because it is only to avoid over trading. But many traders also say that taking high leverage is more convenient, but their principle is that every trade the total margin used is not more than 2% of the total balance. so as to avoid margin calls. so basically every trader will be different in choosing leverage, but it must be adjusted to the ability and comfort.

 

[Titulus]

Leverage is not meant for every trader. If you know how to trade using leverage, then you should use it, otherwise do not. I have used leverage on numerous occasions, but haven’t gone beyond 200x with turnkey forex although they offer 500x leverage. Just found 200x to be more like a safe number to me, and I’ve always added sl and tp in my trades to play safe.

 

[Polyglot]

Agreed! Traders who don’t know what they are doing must avoid using it. High leverage can be dangerous as it increases your risk exposure. Traders must use strict risk management to avoid unnecessary losses or they could end up losing a lot of money very quickly.

 

[Jack Reacher]

Majority of the traders complain that their brokers create issues while withdrawing money. Traders feel unsatisfied when any broker delays sending their funds into the receiver’s account.Eurotrader never creates any issue while withdrawing money and provides traders with the best facilities.