low forex trading site platform every day said high leverage r forextradingwebsiteonlinek huge high leverage platform every day said low leverage poor capital utilization, and stressed that the size of the forextradingbrokerwebsite has nothing to do with the leverage multiples, but depends on the trading model public justification, the mother-in-law justified, in the end which is right or wrong? I will take my personal experience and understanding of foreign exchange trading to talk about my views In the beginning of contact with speculative foreign exchange, will often hear a word leverage, leverage how much the choice of foreign exchange investors need to choose when opening an account, and the size of the leverage and the risk of how a relationship 1: 20 leverage, 1: 100 leverage, 1: 400 leverage in the end what is the difference? Leverage large or small good? This is a problem for many newcomers to foreign exchange is not the size of leverage and profit and loss proportional to it, whether the greater the leverage, the greater the profit, corresponding to the higher risk? For example, to account funds 6000 U.S. dollars, buy 1 euro / U.S. dollar down for example (a point 10 U.S. dollars): 1: 20 times leverage: occupy funds 5000 U.S. dollars, there are 1000 U.S. dollars in the account is active, can resist the risk of 100 cashback forex, when the market price fluctuations upward loss of 100 points, the occurrence of margin calls, the system will be forced to close your position (great risk) 1: 100 times leverage: occupy funds 1000 U.S. dollars, there are 1000 U.S. dollars in the account is active, can resist the risk of 100 points, when the market price fluctuations upward loss of 100 points, the occurrence of margin calls, the system will be forced to close your position (great risk) 1: 100 times leverage: occupy funds of $1000, there are $5000 in the account is active, can resist the risk of 500 points, when the market price fluctuations upward loss of 500 points, when the margin call, the system will be forced to close your position (risk general) 1: 400 times leverage: occupy funds of $250, there are $5750 in the account is active, can resist the risk of 575 points, when the market price fluctuations upward loss of 500 points, the system will be forced to close your position (risk general) 575 points of risk, when the market price fluctuations upward loss of 575 points, the system will be forced to close your position when a margin call occurs (risk is small compared to 1: 20 and 1: 100 times leverage) Finally, we can conclude that: in the account under the same conditions of capital, do the same number of lots (1 contract called 1 lot), the higher the leverage ratio, the smaller the risk! Low leverage multiples of the platform is the use of leverage to limit the maximum position of the customer even if you are full, but also a very low position, your risk-taking capacity is very strong, it is difficult to blow up the position so even a very aggressive investor, his losses will be effectively controlled every investor is clear that the greater the risk, the greater the return but we should also be clear when the risk is too high, the return on becomes negligible
