Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 56% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Sapiens Markets has not accepted registrations from retail clients resident in Spain since July 31, 2024.

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Achieve Optimal Leveraging in Trading | Attaining exponential growth without unnecessary risk

Most traders associate over-leveraging (by aggressive position sizing) with the dangers of destroying your trading account. And although this is true when over-leveraging to extreme levels, even over-leveraging to a lesser extent is dangerous.

Most traders associate over-leveraging (by aggressive position sizing) with the dangers of destroying your trading account. And although this is true when over-leveraging to extreme levels, even over-leveraging to a lesser extent has a detrimental effect on reward/risk.

Increasing leverage with higher position sizing will initially lead to exponential growth (for any trading strategy that has a genuine edge). The first sign of over-leveraging is when large drawdowns start to break up this exponential growth. When you see this, you know it's time to leverage down. However, increase leverage further and you risk destroying your trading account.