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Financial leverage is a double-edged sword
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[QUOTE="selena1, post: 309291, member: 97995"] There is no doubt that financial leverage is one of the important tools that opened the door to trading for everyone, thanks to which it became possible to open large deals with small amounts, but the most problematic that financial leverage created in conjunction with this matter is when it became misused by traders so that when we say open Large deals with small amounts, this means that the trader can lose a lot if he does not trade responsibly through the rational use of this tool, which is a double-edged sword. Leverage is one of the tools that helps a person to start the world of trading by doubling the capital that the trader possesses by default several times so that the balance allows opening deals on the real account, but it can be a double-edged sword as the very exaggerated financial leverage is often It is a reason for the trader to lose his entire account because of the great risk. For example, some companies can give you leverage of up to 1:3000 times, which allows the trader to open very large contracts from a small capital that may make the trader risk his entire account on a very few points, such as 5 or 10 points. Therefore, it is always preferable not to exaggerate in choosing the financial leverage and to use an appropriate leverage with the size of the account. [/QUOTE]
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Financial leverage is a double-edged sword
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