Leverage

[Electric Rainbow]

They are having their own language which we can not understand but we can use google translate to get an idea about what they are sharing here.

 

[jolli]

We can use translation. But because it's automated, some phrases really change their meaning and it's not always possible to get the actual idea.

 

[Mr. Lucky]

Absolutely, we cannot translate each and every phrase of any language, so it is better that if he could post the same in the English, for us to understand that in a better way.

 

[Electric Rainbow]

here is a relationship between leverage and its impact on your Forex trading account. The greater the amount of effective leverage used, the greater the swings (up and down) in your account equity. The smaller the amount of leverage used, the smaller the swings (up or down) in your account equity.

 

[Mr. Lucky]

Have you translated the post, or you are just sharing your knowledge? It is quite confusing please make it clear.

 

[Electric Rainbow]

The problem with leverage is and has always been about temptation. Leverage is merely a tool. If you know how to use it wisely, then it can be useful. If you don't, then you'll hurt yourself.

 

[Mr. Lucky]

The problem with leverage is and has always been about temptation. Leverage is merely a tool. If you know how to use it wisely, then it can be useful. If you don't, then you'll hurt yourself.

I think that you haven't read my post, are you just sharing your thoughts or you are translating the post which is given above.

 

[sofar]

There is something we should know about leverage, the higher the leverage the higher the risks. Don't get me wrong, leverage is good, but we should be careful with it.

 

[Luke Hansen]

Various factors are generally considered while selecting forex broker. And one of them is leverage. It is the amount of fund that a trader can effectively borrow from the broker against the amount in his trading account as margin. So a trader can trade with the levered funds. So for small investor a high leverage can be a good opportunity. For example: 1:300 leverage ratio meaning that you can borrow $300 against $1 in your trading account as margin.

 

[Luke Hansen]

higher leverage, good or bad?

Leverage is being considered as a trading tool which is allowing an investor to extend his capital amount through a process of borrowing. Instead of taking loan from outsiders a foreign currency exchange trader can take a money loan from his broker through the process of leverage. However, higher leverage can possess higher risks. By this means effective fund management is mandatory if you want to take the benefits of higher leverage.