#ForexTips Managing leverage effectively is crucial for risk management and long-term success in trading or investing. Here are key strategies to do it well: 1. Understand Your Risk Tolerance Determine how much risk you can handle without emotional stress. Avoid using maximum available leverage just because it's offered. 2. Use Stop-Loss Orders Always set stop-losses to protect against excessive losses. Adjust stop-loss levels based on volatility and position size. 3. Position Sizing Risk only a small percentage (e.g., 1-2%) of your capital per trade. The higher the leverage, the smaller your position size should be.