Is 1:1000 leverage really profitable for small capital?

[Bambang Sugiarto]

How much does leverage affect margin, and how can you manage risk to stay safe when using this much leverage? Is high leverage suitable for beginners, or does it just accelerate losses?

[arabitech]

Higher the leverage and higher the chances of losses if the odd turn against us so the new traders being unaware of the market conditions should keep the leverage low in start.

[bluemac]

Some brokers like hfm etc offers leverage of up to 1:400 on regular and 1:1000 on micro accounts while some crazy offers in the market like 1:3000 which seems pretty unrealistic to me. New traders being unaware of the market conditions should keep the leverage low because it may bring damages as well.

[hhduy]

I think HFM’s leverage options are okay. 1:400 is not too risky if you know how to manage your lot size. The problem is when people open big positions with no stop loss. That’s why most beginners lose fast. Leverage itself is not bad, but misuse is.

[binaryowner]

I’ve seen 1:1000 work at HFM only when lot size is tiny and every trade has a hard stop - otherwise it just accelerates account death. Leverage isn’t the enemy; oversized positions and no exit plan are.

[bluemac]

There are some brokers with crazy offers like 1:3000 which seems pretty unrealistic to me. 

[binaryowner]

High leverage isn’t the problem; position sizing without a hard stop is. On small accounts I cap risk at 0.25–0.5% per trade and let leverage simply reduce margin usage—tiny lots, hard stops, no exceptions