High leverage is a big no no for most because it essentially reduces the margin consumed per trade leaving more margin available to take more trades. Hence it lures traders into over trading. Well then is it really the high leverage that's the culprit here or a faulty mindset that is digressing beyond solid risk/money management strategies to put more capital on the line? This video explains that the very idea of high leverage can actually be used to be more safe than most.
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Duration: 4m 20s
Rating: 27
What is understand is instead of putting 100% of what you want into the brokers account, you put in 20% and when using leverage of maybe 1:100, the trade grows and increases by 10%, when striped of that leverage, you would remain with 200% of your money back.
However, if the market goes the other direction, the broker will close the trade when you run out of money? so in the end you get 5 tries to get a win.
But doesn't the account go into a negative balance?