Why is it that the professionals and hedge fund managers use such low leverage?
I thought that trading very high probability setups with for example 10pip SL and 20 pip TP at 500 leverage would be very popular when I first came here yet most of the experienced traders here go for 50 leverage or below.
Is this because the more experienced are taking out longer term trend trades for the greater reliability or that experience has taught them that the broker will clamp down and cause slippage,requotes etc for highly leveraged quick scalps?
I would like to hear your points for and against high leverage.
Regards Seb.
I thought that trading very high probability setups with for example 10pip SL and 20 pip TP at 500 leverage would be very popular when I first came here yet most of the experienced traders here go for 50 leverage or below.
Is this because the more experienced are taking out longer term trend trades for the greater reliability or that experience has taught them that the broker will clamp down and cause slippage,requotes etc for highly leveraged quick scalps?
I would like to hear your points for and against high leverage.
Regards Seb.
The greatest force on earth is compound interest.