Do trading in forex gives us 1:1000 or more leverage

jeraldskie11

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Quote from: palle11 on March 30, 2023, 05:47:11 PM

Forex is just like cryptocurrency trading. If you understand the way to trade crypto then you can apply it to forex because it is same mode of action and same indicators to help and guide you.

In my own perspective, you can't totally apply your strategy from crypto to forex. First of all, cryptocurrency is very volatile but forex is not so much. Due to the small market capitalization of crypto, the price can be manipulated a lot. Like when you trade in crypto, you think the manipulation is only here but it's not, then you think the market has normalized but it suddenly goes back to the top to get liquidity again where stoploss of small traders were place before the price continues. That's what I've experienced in crypto trading, but in forex there's still manipulation, but it's not so difficult to see where the manipulation is. That's why you can't totally use your strategy in crypto to forex unless you backtested it and modify your strat.
There's one thing that what I really like in crypto is that it can possibly make people rich in no time.

EarnOnVictor

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Leverage of a thing is like a two-edged sword, it could work for you or against you. Also, it depends on the strategy and accuracy of trading of the trader, yet it would be appropriate to mention that leverage is better reduced for better account planning and safety. There is no way a trader would call himself a good manager of his account with high leverage, it's certainly detrimental to the success of such a trader.

Some desperate brokers will allow as much as 1:3000 leverage, I wonder what a reasonable trader would do with that. Conclusively, the best leverage should not be higher than 1:200 if such traders are planning their money and risk management properly.

adaseb

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Yes 1000x leverage is possible. It seems high but I have seen leverage as high as 500x with many brokers. You need to understand that forex doesn’t move as fast as crypto or stocks. Most days forex pairs trade maybe 50 pips or so. So if you trade a standard lot which is 100,000 units you would make $10 a pip which is $500.

So with 1000x leverage you would only need $100 or so depending on the pair to open the trade. And you would get stopped obviously when it goes 10 pips against you. Probably less due to spread and margin requirements.

libert19

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Wouldn't be surprised if 1000x leverage is given for forex markets as their volatility is significantly low. Just look at this image,

https://talkimg.com/images/2023/05/14/blobb5db2a3abcf276d5.png

Using such leverage might make forex doable for crypto people Tongue

bittraffic

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Quote from: MusaMohamed on March 30, 2023, 10:14:46 PM

Quote from: cafter on March 30, 2023, 07:50:32 AM

I seen on many platforms that leverage or what ever they says,
is it real that they give leverage of 1:1000 or more to trade, isn't it's risky, or the currency market is very less volatile ?

Have you gotten any liquidation by using leverage like x5, x10, x25 or x50. I don't mention x100 because it is very risky and with only 0.5% of price change, you can be liquidated.

With x1000 leverage, what will you do to protect your capital and avoid forced liquidation?

Gamblers can bet with x1000 leverage if they want but I don't. With x100 leverage, you must be really professional with trading to use it and with amount you afford to lose.

Forced Selling (Forced Liquidation): Definition and examples

Stoploss inorder to protect your capital. But we also know that it's also a bad way to lose when the market is against your position.

Forex has better leverage xx than crypto. It's risky but fun at the same time when you just have less money to roll. I remember with $200 capital, I can earn $1 per pip, and sometimes the market swings up to 70 pips a day, especially on the days where there are terrible news and nonfarm payroll days.

MusaMohamed

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Quote from: cafter on March 30, 2023, 07:50:32 AM

I seen on many platforms that leverage or what ever they says,
is it real that they give leverage of 1:1000 or more to trade, isn't it's risky, or the currency market is very less volatile ?

Have you gotten any liquidation by using leverage like x5, x10, x25 or x50. I don't mention x100 because it is very risky and with only 0.5% of price change, you can be liquidated.

With x1000 leverage, what will you do to protect your capital and avoid forced liquidation?

Gamblers can bet with x1000 leverage if they want but I don't. With x100 leverage, you must be really professional with trading to use it and with amount you afford to lose.

Forced Selling (Forced Liquidation): Definition and examples

palle11

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Quote from: jeraldskie11 on March 30, 2023, 11:22:24 AM

Forex is less volatile than crypto

I doubt this that forex is less volatile than crypto, except you have not withnessed the volatility of some pairs in forex like gold and silver or even pounds paired with joy. Forex has some less volatile pairs though but the pairs mentioned can wipe your capital away before you understand what is going on.

Quote from: jeraldskie11 on March 30, 2023, 11:22:24 AM

It's a bit difficult to understand, so you need someone to assist you if you are a beginner. That's one of the reasons why people don't think about entering forex.

Forex is just like cryptocurrency trading. If you understand the way to trade crypto then you can apply it to forex because it is same mode of action and same indicators to help and guide you.

ashmodeus

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of course it risky, but if u using 0.1% from ur balance its same like using 10% from your balance using 10x leverage , just reminder : dont make leverage trading as a gambling , its really different and for me , leverage is more addicted than slots machine.

jeraldskie11

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Quote from: cafter on March 30, 2023, 07:50:32 AM

I seen on many platforms that leverage or what ever they says,
is it real that they give leverage of 1:1000 or more to trade, isn't it's risky, or the currency market is very less volatile ?

Forex is less volatile than crypto but that doesn't mean it's not risky especially if you use leverage. If you use leverage in trading, a small move in the market will be very profitable, but the opposite is also true if the market goes in the direction against you. 1;1000 leverage is extremely risky especially if you are a beginner. Mostly used is 1:100 and 1;500 leverage but it also depends on your lot size. The smaller your lot size and the smaller your leverage, the lower the risk. It's a bit difficult to understand, so you need someone to assist you if you are a beginner. That's one of the reasons why people don't think about entering forex.

palle11

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here is some answer for you

Quote from: cafter on March 30, 2023, 10:09:51 AM

this mistake i have also done 1 year ago it takes only 1 or2 minutes to blow your account, at 125x or more leverage,
advice to newbie: never take more then 10x leverage it is very harmful to your account and health.

When you don't trade with stop loss you can be sure that your account will be blown away sooner than later even if you use leverage 1:2 that is simple as it is especially when you are trading against the waves or trend, your capital keeps "flying " away gradually until margin call happens. So to trade high leverage is advantage if you know how to manage your risk because you have more borrowed money to trade for your benefit.

fauzan Ichsan

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if the volatility maybe cryptocurrency is greater volatility compared to forex. the greater the leverage in forex, the greater the risk, so that most traders hold transactions until they experience a margin call. for beginners I think a leverage of 1:200 is good, that way we will be able to learn discipline, and look for opportunities that really have a small risk, because if we hold it while it's floating minus, it will stopout automatically, so our capital is safer , because there may still be several trading opportunities again, all of this is closely related to trading psychology

cafter

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Quote from: Oshosondy on March 30, 2023, 09:46:24 AM

I am not a forex trader, but according to what I have heard from forex traders, they said they can leverage up to 1000x, but I am not sure how true is this.

As a crypto trader, the highest leverage I have seen is 200x. I first saw it on Huobi global. I also saw it on Pancakeswap.

Quote from: cafter on March 30, 2023, 07:50:32 AM

is it real that they give leverage of 1:1000 or more to trade, isn't it's risky, or the currency market is very less volatile ?

I do not know about forex, but using leverage is very risky in crypto trading. Bitcoin is the less volatile coin, I still find it difficult to use leverage more than 5x, while I prefer 3x. I prefer 2x for altcoins. It is better not to even use leverage for some altcoins.

When I started to trade, I went for 125x, I lost all my money. I used 10x, not that good. I do not use more than 5x now. If I am very sure of the market, but not common, I can go for 10x and not going beyond. 10x is very volatile and not advisable too, only for special time you are more than sure that market is going towards your direction.

this mistake i have also done 1 year ago it takes only 1 or2 minutes to blow your account, at 125x or more leverage,
advice to newbie: never take more then 10x leverage it is very harmful to your account and health.

Oshosondy

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I am not a forex trader, but according to what I have heard from forex traders, they said they can leverage up to 1000x, but I am not sure how true is this.

As a crypto trader, the highest leverage I have seen is 200x. I first saw it on Huobi global. I also saw it on Pancakeswap.

Quote from: cafter on March 30, 2023, 07:50:32 AM

is it real that they give leverage of 1:1000 or more to trade, isn't it's risky, or the currency market is very less volatile ?

I do not know about forex, but using leverage is very risky in crypto trading. Bitcoin is the less volatile coin, I still find it difficult to use leverage more than 5x, while I prefer 3x. I prefer 2x for altcoins. It is better not to even use leverage for some altcoins.

When I started to trade, I went for 125x, I lost all my money. I used 10x, not that good. I do not use more than 5x now. If I am very sure of the market, but not common, I can go for 10x and not going beyond. 10x is very volatile and not advisable too, only for special time you are more than sure that market is going towards your direction.

cafter

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I seen on many platforms that leverage or what ever they says,
is it real that they give leverage of 1:1000 or more to trade, isn't it's risky, or the currency market is very less volatile ?

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