In reality, leverage is a loan that

[Nilde Lucchese]

Overleverage is harmful because it increases financial risk, amplifying losses if investments underperform. It can lead to an inability to meet debt obligations, resulting in bankruptcy or forced asset sales. High leverage reduces financial flexibility and can jeopardize long-term stability. Even though LQDFX broker provides 1:1000 leverage, I stay satisfied with using only as much as I can afford.

[maspluto]

All traders who enter forex trading must have known that forex trading has a very high risk. So, keep studying and learning a lot, so that later traders can manage risks well and trading activities can be comfortable and safe at Tickmill.

[Zeologic]

Traders who want to trade with low risk, choose low leverage which is lower risk than high leverage. On the one hand, leverage is useful for increasing profits, on the other hand, the risk will be higher because leverage allows traders to place orders with lower margin requirements with larger position sizes. On the other hand, using a large position size will reduce the margin level which will narrow the account's strength to withstand market fluctuations.

[Hanan Öberg]

In reality, leverage is a form of loan that increases both potential profit and risk. To use leverage, a trader must open a margin account with a forex broker. The leverage offered typically ranges from 50:1 to 200:1, depending on the broker and trade size, allowing traders to control larger positions with a smaller capital.