Though a trader can use levered funds, it is generally said that working with high leverage can possess many threats. It is also advised to the beginners not to use leverage since with higher amount of leverage a trader can expose to greater capital risks. However, according to many pro traders one should try to maintain proper risk factors to take participate in trading in safe zone.
Again, a trader must also try to decide on his risk to reward ratio when he is thinking to invest in larger amount. Whenever we are thinking of making investment, we should never forget to manage risks. Profit generation will be easier when a trader can ensure efficient use of his assets here.
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