All about the leverage on FOREX  I see that many people do not understand
what the leverage on the forex market
is. Also, among beginners there is a myth that the more the level of
the shoulder - the higher the risk. Let's try to figure out if
this.For starters, let's clarify what exactly
is this is the most leverage. Leverage can be of different
sizes: 1:20, 1:50, 1:100, 1:200, 1:400 or 1:500. Some very dubious firms even offer a level of 1:1000. Leverage allows you to trade more money than you have in the
account, taking them on loan from the broker. This can help increase your profits (or losses when the price goes
against your position).Consider the following example. John has a brokerage account size of 5000$ and decides to sell a
whole lot USDJPY. Trading one lot, John actually
uses to trade 100,000$. If he uses a leverage of 1:100,
then the pledge of 1,000$ taken from his account, and 99,000$ provides broker. Results one hundredth of the required amount from the account is John. This is the power of leverage of 1:100.
And how did the broker protects himself
against possible loss of money? Very simply, the potential loss
is capped by John on his account. Let us assume that th…
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