Leaverage in Forex

[lucacrebbe]

Hello, can you help me please with this question?


I see that forex dayily movements are not so deep (for example Eur/usd today is
1,2311 -0,0027 -0,22% )

-0,22%

I think that using the leaverage x10 or x100 should not be so danger, because there are no danger swings in forex

I mean today is -0,22%

If I went long in the morning with a a stake of 1000$ and a x100 leaverage (moving a position of 100'000) I would have still not liquidate my position (because it's down of -0,22% and not -1%)

BUT, In case the trade would have gone in my direction (long) I would have make some decent profit

+0,22% of 100'000


So, is it really dangerous to use leaverage in Forex?

 

[Enivid]

because there are no danger swings in forex

There are.

So, is it really dangerous to use leaverage in Forex?

No, if you size your positions in according with a prudent risk management strategy. Yes, if you just buy and sell the most you can and keep trading without stop-loss.