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Foreign exchange leverage multiples and risk control

low forexbonusrebate platform every day to say forexdiscountbrokers the r forex discount brokersk of high leverage is huge high leverage platform every day to say that the low leverage capital utilization rate is poor, and stressed that the size of the forexrebatesbrokers 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 and which is wrong? I will take my personal experience and understanding of cashback forex exchange trading to talk about my views First of all, it should be clear that, under the premise of completely shielded from human nature, the leverage multiplier is really not necessarily related to the risk of foreign exchange trading, for example, the same 5000 U.S. dollars, 20 times the leverage, the full position is 0.7 lots, can bear the risk of bursting in about 600 points and 400 times the leverage can also do 0.7 lots, the risk of blowout will be greater than 600 points This is the most powerful weapon of high leverage to counter the risk theory of low leverage But, is this really the case? To know 400 times the premise of leverage, $ 5,000 can be opened to more than 15 hands even if the 15-hand position, for example, the risk of bursting the position can withstand only about 30 points, in foreign exchange trading, the 30 points may be a matter of minutes Now the foreign exchange companies will basically promise to give users a rebate, the general rebate point in 0.6 points or so rebate system is undoubtedly the implementation of a signal to This is why many foreign exchange investors feel that foreign exchange is too risky and difficult to make money I have a friend who opened a $2,000 account, and I wont say which platform specifically I remember when he was the craziest, one day he played 30 lots of trading volume, if he can continue then a month of his earnings on the rebate up to $ 3600, has been 1.5 times more than he invested the principal However, less than a week, due to the foreign exchange market However, in less than a week, due to the violent fluctuations of the foreign exchange market, he blew his position, leaving less than $200 of his capital. In fact, his behavior is very understandable, because people are gambling after all, 2, 3 points of spread in a K line can be found back, encounter the entry price to close the position, it seems to be very simple then many people will choose to do a large volume of frequent transactions to brush the single volume, in pursuit of huge rebate profits and in the process of operation is accompanied by the possibility of huge fluctuations brought about by the super profits, more people The actual fact is that you can find a lot of people who are looking for a great deal of money to help fund the welfare industry. I think more people buy lottery tickets with the idea of getting rich overnight. After all, the phrase "if I win 5 million" has become the most commonly discussed topic on the street. Every investor knows that the greater the risk, the greater the return. But we should also be clear that when the risk is too high, the return becomes negligible. make you lose all your money
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