Leverage 1:3000

Forex brokers, especially market makers are typically aware that most newbies are inexperienced, and there's a high chance that they're going to misuse the leverage. Thus, they usually offer high leverage to attract new clients.

In other words, many market makers are using high leverage as a part of their marketing offers. They'd invite you to take a lot of risks, knowing that it's not a good move to do especially if you're starting. 

Continue Reading at 5 Signs Your Broker Trades Against You

When a market maker offers a leverage of up to thousands and even reaches 1:2000, instead of helping you, it may plunge your trading account to a very quick loss.

Continue Reading at Forex Broker Cheats and How to Anticipate Them

Yes, they may need to. Scalpers often feel dissatisfied with the profit they got as they collect only small profits. They think it is not worth all the efforts they make. To overcome this, a scalper can use leverage for their advantage. The higher their leverage, the lower their margins need to be. It means they can use the bigger lot sizes to increase their profit targets.

However, many experienced scalpers recommend beginners to use small leverage in the first three months of trading until they find a suitable and tested trading method.

Continue Reading at The Secrets of Successful Scalping Strategy

To minimize risks related to leverage, there are some tips you could do:

1. Adjust quantity per trade with the real amount of our balance.
2. Control used margin and available margin to anticipate worst-case scenarios.

It is all back to margin and money management. Tailor the leverage used in your trading account to reflect your trading style.

Continue Reading at Types of Risks in Forex Trading