Posts Tagged ‘leverage’

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What Is Leverage in Forex trading?

In this video, you will learn about what is leverage in forex trading. Leverage enables small retail traders to participate in forex trading with a small capital. Leverage enables you to control a larger trading position with small amount allocated as margin from your capital. You can consider leverage like a loan offered to you from your forex broker. Different forex brokers offer you different […]

How Leverage Works in Forex — Using leverage

In this video, you will learn about the importance of using leverage carefully in forex trading. Using leverage properly is an important aspect in risk management. If you want to improve in your trading career, then you must give importance to the way you use leverage. Even it may be one of the negative factors preventing you from progressing. Different brokers offer different leverage. It helps you […]

Fatal Mistakes of Using Too Much Leverage

Most beginner traders think forex as a get rich quick scheme. So, they try to over leverage their trades and end up blowing their account. So, you must follow money management for all your trades. You can follow the 2% rule. You must use stop-loss for every trade. For example, as you can see on the EUR/USD chart, this is a head and shoulders pattern. There are two […]

What Is Leverage? — Forex Leverage Explained — Forex Trading

In this video, you will learn what leverage means, and particularly its advantage in forex trading. In the world of investing, a big capital is usually needed to start with. This is true in the case when we want to invest in financial instruments like bonds, real estate, and stocks. Let us see an example. Suppose John wants to buy a home worth $100,000. He applies for a loan and he understands he has […]

What Is Leverage? Use of Leverage? — Forex Market

What is leverage? What is the use of leverage? When coming to capital market investing, generally, the people will think that they need huge capital to start. But while coming to forex market, it will be more accessible even for small investors due to use of leverage. Leverage, in simple terms, is borrowed funds. Think of you buying a home. The total cost of the home is $200,000. You are […]

Forex — Leverage Explained

Leverage allows a trader to control a larger position than what they have as equity in their trading account. Leverage is most commonly used in real estate transactions through the use of mortgages to purchase a home. For instance, Sally wants to purchase a home worth $500,000. She only has $50,000 and has only the 10% capital required to purchase this home at this stage. She will need to go to the bank and borrow the remaining […]

What Is Leverage and How does it Impact Your Trading?

What is leverage? Basically, it means the amount you can borrow. So, this is a term that is particularly popular in the currency markets. So, if you come across a broker telling you that you can leverage 100:1, it means that you can borrow up to a 100 times your trading account. The leverage depends on individual brokers, but it should not be the only […]

Lot Size, Leverage and Margin

The lot size, leverage, and margin, all work together when it comes down to the mathematical formulas, but first, let us take a look at each one separately and learn what they are. Lot Size: The lot size is how you will determine what each pip you earn is worth. When you place a trade, you have to trade in little currency blocks or units. These little […]

Forex Leverage for Beginners Explained

Leverage is what transforms forex from just another form of trading, to a highly exciting, but also a highly volatile activity. With leverage it is possible to greatly magnify the speed and impact of the trades you place. That means you magnify both the profit potential and loss potential of your trades. A trader opens a trade with a margin of $50 and a leverage of 200 times. The actual trade value will be 50 […]

Lot and Leverage

Forex trading is done entirely on a software platform. The popularity of Forex arises from the market being open 24 hours a day. Forex traders can trade on any of the major foreign currency markets. Trading session begin at 10:00 AM Monday morning in Sydney and ends in New York at 5:00 PM Sunday. During those times traders exchange currency by selecting how many units they want to buy and sell. The quantity […]