Is trading leverage harmful for traders?

[LeoFx]

Leverage has both good and bad sides and even then we prefer having high leverage for some additional advantages in trading. Leverage helps a trader takes more risk than he affords and here is the importance of leverage. But it is always wise to use moderate leverage to stay out of risk. Even though LQDFX broker offers me 1:1000 leverage, I stay limited to using 1:100 leverage.

 

[Fin_Trader]

First of all, a trader should control risks when trading. In this way, he can minimize his losses on incorrect transactions and save his deposit. And although my broker fxopen gives the opportunity to trade with maximum leverage, I chose 1:50 leverage for trading, so my trading is safer and less nervous.

 

[Lee.me]

If you know what you are doing, you can choose whatever leverage you like, the preference being that it suits your strategy of course.

 

[benji177]

Leverage is a bit iffy, but if you have the capital and risk tolerance for it, go big.