Understanding leverage in forex trading advice


Understanding leverage in forex trading advice


It is not a fee, nor is it a charge to your account. Understanding leverage in forex trading advice, it serves to ensure that you have a sufficient account balance relative to the size of your position. Margin is the inverse of leverage (described later in this document).The exact amount traders need in their account to put on a position depends on the size of their position and what instrument they are trading. For instance, leverage on AUDJPY is listed as 500:1. This means that traders can trade up to 500X the equivalent amount of Australian dollars they have in their account.

That meanOANDA uses cookies to make our websites easy to use and customized to our visitors. Cookies cannot be used to identify you personally. To block, undsrstanding or manage cookies, please visit aboutcookies.org. Restricting cookies will prevent you benefiting from some of the functionality of our website. At City Index, leverage, also referred to as margin, allows you to gain a large exposure to the forex markets for a relatively small initial deposit.This means that should the markets move in your favour, your net returns could be much greater than your initial outlay, which would not be the case were you to understandinb the currency physically.Leverage, however, is a double-edged sword so whilst your net returns could be much greater than your initial deposit, so can your losses and here lies the main risk with leveraged trading.




Understanding leverage in forex trading advice

Understanding leverage in forex trading advice


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