People always say, “High leverage will blow your account,” but what they don’t realize is that it’s not leverage itself that’s the problem—it’s how you use it.
Leverage gets a bad reputation because traders misuse it. The real danger isn’t leverage; it’s poor risk management. If you control your position size and use stop-losses wisely, even high leverage can be safe.
Think of it like this:
A trader using 500x leverage but only risking 1% of their account per trade is actually in a safer position than…
Another trader using just 10x leverage but risking 20% of their account on a single trade.
Who’s really at risk here? The second trader, because they’re putting too much on the line, even with lower leverage.
The Bottom Line:
Leverage doesn’t kill accounts—bad risk management does.
If you manage your position size properly, leverage can be an asset, not a liability.
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