The leverage multiplies the margin (security deposit) from the account. Traders are thus able to trade higher positions in the market.

Generally, only a low leverage is necessary in swing trading, as large movements are taken. If you use a reasonable risk management, high leverage is not necessary. If your trading account nevertheless has a high leverage (1:500), swing trading is also possible without any problems. It just means that you "can" trade higher positions.

Is there a higher risk in swing trading?

Do not underestimate the risk in swing trading. The risk is similarly the same as in other trading methods. When trading in the market, you always expose yourself to the risk of loss.

Some traders claim that long-term trading has less risk. However, you can lose money just like in short-term trading. This statement can only be agreed to a certain extent. However, the advantage of swing trading is that the trader has more time to react. Suitable here is a sensible risk management with no more than 1% - 2% risk of the total account.

The risk of swing trading: 

•     Swing trading is not riskier than other trading platforms.
•     Traders have an advantage because they have more time to react.
•     Sensible money management helps risk containment

In my opinion, swing trading is particularly suitable for professionals and beginners. Generally speaking, this is a longer-term investment in the mt5 Exness. The holding period of trading positions start from one hour or more.

The advantage for beginners and professionals comes from the time unit. Short-term trading requires enormous attention and practice. Furthermore, the trader can make use of "carry trades". In the currency market, a positive interest credit can occur when positions are held overnight.

My recommendation is for traders to stay in the larger time units. It has only advantages for you.

Most frequently asked questions: 

What is swing trading?

Swing trading is stock market trading carried out in a longer period of time ranging from hours to days. As a trader, you try to trade the largest portion of a movement. This is not always possible, but with high probability you will achieve better results than in day trading. Swing traders focus on a longer-term investment in an hourly chart or higher.

How much money do I need for swing trading?

Swing trading can be started with very little capital. Some brokers even do not require a minimum deposit to open an account. For trading it is recommended to use Forex and CFDs. There, the position sizes are piecemeal and you can start with little money or a risk of a few cents.

Can I test Swing Trading for free?

Yes - Just open a free trading demo account with any broker. Many providers provide accounts with virtual credit. You can thus test the platform and the trading offer without risk. The demo account imitates real money trading. Practice swing trading and gain your first experience.