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  1. #1
    Rookie Member

    Leverage and its risk !!!

    I have seen according to my trading experience by and large traders in particularly the newcomers consider high leverage at much risk , I donít consider it at all, if there is any risk it is completely with non-sense planning and zero risk management policy nothing to do with high leverage at all. so, before trading with high leverage we the traders first of all have to know how to manage risk. actually leverage allows an investor to grow his market exposure to a level that exceeds the initial investments.

  2. #2
    Legendry Member milos's Avatar
    Follow rule 2-5% risk management.

  3. #3
    Moderator Kolyo's Avatar
    Hi, Milos is right here! Don't look at leverage subject so much, actually in binary options there is no such thing like leverage which is normal to all other types of trading. Focus on first place on RISK! Risk is what you should control and on the basic level risk per trade. Never risk too much on a single trade. If you open trade where you are risking 100% of your capital, you know it is totally reckless, if you risk let's say 20% it is Still reckless, but if you risk only 2-5% per trade than 1-2 or even 3 losses in a row won't affect your capability to trade more.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  4. #4
    Rookie Member
    Actually leverage is an important financial tool which allows an investor to grow his market exposure to a level that exceeds the initial investments. For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:500 that always ensures my trading platform LQDFX. But in my demo trading I always took high leverage to see the performance how it works. actually before trading with high leverage we the traders first of all have to know how to manage risk.

  5. #5
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Henry Emy View Post
    Actually leverage is an important financial tool which allows an investor to grow his market exposure to a level that exceeds the initial investments. For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:500 that always ensures my trading platform LQDFX. But in my demo trading I always took high leverage to see the performance how it works. actually before trading with high leverage we the traders first of all have to know how to manage risk.
    leverage is cool but doesn't have much to do with binary, fixed returns and all.
    "Great Googely Moogely" ... Frank Zappa

  6. #6
    Legendry Member milos's Avatar
    Quote Originally Posted by Henry Emy View Post
    Actually leverage is an important financial tool which allows an investor to grow his market exposure to a level that exceeds the initial investments. For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:500 that always ensures my trading platform LQDFX. But in my demo trading I always took high leverage to see the performance how it works. actually before trading with high leverage we the traders first of all have to know how to manage risk.
    Leverage 1:500 and 1:100 can be used in forex trading not in binary options trading...

  7. #7
    Legendry Member milos's Avatar
    As Michael said leverage isn't important for binaries. Only forex trading but this is binary options forum.

  8. #8
    Legendry Member willyw's Avatar
    Quote Originally Posted by Henry Emy View Post
    Actually leverage is an important financial tool which allows an investor to grow his market exposure to a level that exceeds the initial investments. For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:500 that always ensures my trading platform LQDFX. But in my demo trading I always took high leverage to see the performance how it works. actually before trading with high leverage we the traders first of all have to know how to manage risk.
    This is a binary options forum so leverage does not matter

  9. #9
    Rookie Member jkute's Avatar
    Yes, I agree. In order to become a successful trader, you have to consider looking at the risk in the first place. Leverage is not applied in binary options, but it can be applied in marketing business.

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