How does Leverage and Volume affect trades?

[Sarah12]

Trading/practicing on demo account wouldn't necessarily require the attention of how leverage and volume affect trades,this attention comes into reality when you go live,but then my question is how do leverage and volume affect trades?

 

[Enivid]

Higher leverage allows you to open bigger positions with less margin.

Higher volume results in bigger profit/loss per price movement.

 

[Forex Trading Channel]

And this is the reason why most people make millions on demo account, that you can open again and again anytime you want. While you approach real trading you are usually limited with your funds and cannot allow yourself to such big risks.
High leverage is the main reason most forex traders losing their account so quickly. Leverage is an advantage, but should be used wisely and carefully.

 

[fxapex]

Higher leverage allows you to open bigger positions with less margin.

Higher volume results in bigger profit/loss per price movement.

Leverages are very luring, and thats the reason why most of the people use it without analyzing the risk it involves, specially the newbies.

 

[Ary Barroso]

Trading leverage is one of the most important trading feature for retail traders. By the way, traders need to select this trading feature according to the requirements of their trading strategies.

 

[Onanak]

Before you use leverage, be sure that your trading strategy can be profitable and make continuous profits. As leverage increases profits, it is also increasing loses when trading is with loss. So, be very careful what level of leverage you will use

 

[Adam Jackson]

Traders can feel the importance of working with leverage since leverage extends the investment capacity of each trader. There is no surprising fact that each trader may have some need of emergency money which he can channel through levered money. Yes, when it is the matter of deciding which alternative is best: working with leverage or without leverage in that situation it will solely reliant on the trading styles adopted by a trader.

 

[Ary Barroso]

Traders can feel the importance of working with leverage since leverage extends the investment capacity of each trader. There is no surprising fact that each trader may have some need of emergency money which he can channel through levered money. Yes, when it is the matter of deciding which alternative is best: working with leverage or without leverage in that situation it will solely reliant on the trading styles adopted by a trader.

Nice to see your point of view on the trading leverage! By the way; what’s your recommendation to the retail traders on trading leverage?

 

[AndyLang]

Which leverage and volume are the best for a new trader? I am a new Forex trader and I see most brokers offer 1:100-1:500 leverages, also lot size 0.01 as minimal. Please recommend me and explain suitable leverage and volume trading.

 

[Ary Barroso]

Which leverage and volume are the best for a new trader? I am a new Forex trader and I see most brokers offer 1:100-1:500 leverages, also lot size 0.01 as minimal. Please recommend me and explain suitable leverage and volume trading.

Not more than 1:50! I think, 1:100 is relatively high; but your trading strategy provides you an impressive success ratio then you can go with 1:100!