Leverage is useful or not ?

[DuskCrapper 36]

Whether you win or lose by using leverage is determined by your trading strategy. With a real trading plan that includes an exact risk management plan, it is clearly possible to profit quickly by using high leverage despite having a small balance. On the other hand, even with a sufficient trading balance, it is impossible to ensure profit through leverage if you do not know how to manage risk.

[CrispyWings 51]

Of course, leverage is a critical service for me! Because I am trading with less than $1,000! However, in order to implement my strategy, I require a logical leverage facility! Yes, I am trading with a leverage of 1:100!

[SydKr 2]

Leverage is simply the credit provided by the broker to enable the trader to buy or sell at a higher volume. Leverage, on the other hand, is a double-edged sword. It can result in enormous profit or significant loss. It enables an investor to increase his market exposure beyond the initial investments. It is always surrounded by risks, which is why it is more prudent to acquire a proper risk management strategy prior to utilizing it.

[Half-witChimichanga 20]

It's useful when you adding to winning trades.

[hellapikachu 26]

Your comments are generally good. The key is not over-leverage. Even if you have a trading system with positive expectancy, you can still blow up your account with too much leverage. That is because trading systems with long-term positive expectancy still necessarily have drawdowns, and too much leverage will wipe you out during those drawdowns.

There are risk-of-ruin calculators out there, or even more conservative risk-of-drawdown calculators out there which can help calculate the optimal leverage for your situation.

[SangreBobcat 28]

I'm a little bit aggressive. I trade $1,000 for every $100 in my account balance.

[HTeen 11]

I used to trade with high leverage in order to make a quick profit, but now I am comfortable with 1:1000 leverage, which allows me to trade in a large lot despite having a small balance. However, when markets move erratically, I use lower leverage to reduce risk.

[ReatrdGeam 54]

When you are trading out of control, high leverage will kill your account in no time.

[FaggotGrylls 7]

1 minute ago, HTeen said:

I used to trade with high leverage in order to make a quick profit, but now I am comfortable with 1:1000 leverage, which allows me to trade in a large lot despite having a small balance. However, when markets move erratically, I use lower leverage to reduce risk.

With high leverage you can make high profit rapidly but you can also make huge losses

[PS4Smart420 10]

This question has been asked many times. Leverage is useful if you REALLY know how to use it. Higher Leverage = Higher Risk.