Forex Leverage

Leverage Definition

In the case of forex, that money is usually borrowed from a broker. Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up - and control - a huge amount of money..When an investor decides to invest in the forex market, he or she must first open up a margin account with a broker. Usually, the amount of leverage provided is either 50:1, 100::1, depending on the broker and the size of the position the investor is trading..

Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, that money is usually borrowed from a broker..The use of leverage in trading is often likened to a double-edged sword, since it magnifies gains and losses. This is more so in the case of forex trading, where .Trading with too high a leverage ratio is one of the most common errors committed by new forex traders. Therefore, until you become more experienced, OANDA . In the course, you will learn about the basics of a FOREX transaction, what leverage is, and how to determine an appropriate amount of .

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