It is better to avoid taking risks with futures contracts using leverage higher than ×6, as high leverage can lead to significant losses if risks are not managed well.
Reasons to avoid high leverage
- *Increased risks*: High leverage increases risks and makes it difficult to manage trades effectively.
- *Significant losses*: High leverage can lead to significant losses if risks are not managed well.
- *Psychological stress*: High leverage can lead to significant psychological stress, which may affect trading decisions.
Tips to avoid risks
- *Use moderate leverage*: It is better to use moderate leverage, such as ×1 or ×2 or ×3 or ×4 or ×5.
- *Risk management*: Risks should be managed well, including setting stop-loss and take-profit levels.
- Education and training: Necessary education and training should be obtained for effective futures trading.
By avoiding high leverage and managing risks well, you can reduce risks and increase your chances of success in futures trading.
