Jump to content

Margin And Leverage In Forex


Recommended Posts

“leverage” is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest.

For example, to control a $100,000 position, your broker will set aside $50 from your account ( Like In FBS Forex Broker ). Your leverage, which is expressed in ratios, is now 2000:1.

You’re now controlling $100,000 with $50.

Let’s say the $100,000 investment rises in value to $101,000 or $1,000. If you had to come up with the entire $100,000 capital yourself, your return would be a have 1% ($1,000 gain / $100,000 initial investment).

This is also called 1:1 leverage. Of course, I think 1:1 leverage is a misnomer because if you have to come up with the entire amount you’re trying to control, where is the leverage in that?

Fortunately, you’re not leveraged 1:1, you’re leveraged 2000:1. The broker only had to put aside $50 of your money, so your return is a groovy 400% ($1,000 gain / $50 initial investment).

Link to comment
Share on other sites

margin and leverage choose an enormous influence on our trading because of the greater leverage chosen will be smaller margin required so that it will be profitable for us. By doing so we are able to trade with the maximum and comfortable. in instaforex we can trade with leverage 1:1000

Link to comment
Share on other sites

traders can find many information about definition of forex market, including margin and leveragae explantion.
while you may need more informative way of learning, a video explanation would be more interesting

contain basic fx knowledge including how to calculate profit/loss, how leverage affect our trading account.
you may want to check their forex infographic
http://www.armadamarkets.com/infographics/
it's more informative and a better way to learn fx market basic knowlegde.

Link to comment
Share on other sites

Forex is a sort of business that is highly dependent on having good leverage available for trading, as it is what makes Forex so much profitable even without high investment especially for newbies like us. If we want to be successful than we must select or choose a company that has quality service.

I love to trade with OctaFX; it is one of those rare companies that we can depend completely. They have everything that we need. We can start from just 5 USD investment and get countless benefits such as 50% bonus, low spread of just 0.2 pips, high leverage up to 1.500 and also incredible customer service that talks with us like a family member and make sure we understand everything perfectly!

Link to comment
Share on other sites

Concept to determine the function of leverage and margin, we can use a calculator trader. traders calculator is a tool that can be used to determine the function of the margin, leverage based lot and currency pairs used.

I use a calculator trader from FBS broker to determine the value of a pip value of my trading plan based on the currency pair that I use

Link to comment
Share on other sites

Concept to determine the function of leverage and margin, we can use a calculator trader. traders calculator is a tool that can be used to determine the function of the margin, leverage based lot and currency pairs used.

I use a calculator trader from FBS broker to determine the value of a pip value of my trading plan based on the currency pair that I use

We must choose leverage which we alread adjust with our money/funds in forex. And then facility from broker surely must be used to help us. I think we should use small amount first before we trade in forex.

Link to comment
Share on other sites

yes, we use the leverage that we must maximize well as premises we maximize our leverage well then we will be able to use the maximum results anyway. for now I am more comfortable trading with leverage 1: 1000 of instaforex

Link to comment
Share on other sites

  • 4 weeks later...

yes, we use the leverage that we must maximize well as premises we maximize our leverage well then we will be able to use the maximum results anyway. for now I am more comfortable trading with leverage 1: 1000 of instaforex

Leverage from a broker will help trader to start trading although we just use small amount. Even, when we are new in forex, we will get real trading experience using real account.

Link to comment
Share on other sites

Leverage from a broker will help trader to start trading although we just use small amount. Even, when we are new in forex, we will get real trading experience using real account.

yes, the leverage we can trade using a small capital. so then we will be able to trade with the maximum and comfortable if we are able to utilize leverage well. for now I choose to trade with leverage 1: 1000

Link to comment
Share on other sites

yes, the leverage we can trade using a small capital. so then we will be able to trade with the maximum and comfortable if we are able to utilize leverage well. for now I choose to trade with leverage 1: 1000

We can change leverage as we want. But we also must understand about forex. In a broker, we should not use maximum leverage from a broker. We just have to be able to maximize that leverage as well as possible.

Link to comment
Share on other sites

leverage of forex trading is indeed will affect our trading performance, for that we need to use leverage to the maximum so that we will be able to maximum results as well.

Link to comment
Share on other sites

leverage of forex trading is indeed will affect our trading performance, for that we need to use leverage to the maximum so that we will be able to maximum results as well.

Leverage in forex will help us to get more maximal result. Be discipline and also be wise in using leverage. Although we get maximum leverage from our broker, it doesn't mean that we can be over when trading, i mean using bigger lot size

Link to comment
Share on other sites

Leverage in forex will help us to get more maximal result. Be discipline and also be wise in using leverage. Although we get maximum leverage from our broker, it doesn't mean that we can be over when trading, i mean using bigger lot size

Every broker also provide different maximum leverage for their clients. And as a trader, we only can maximize for trading. Being disicpline, we will get better result. But we also must understand market movement. Both analizing skills and management skills must be balance.

"Invite your friend, get $10 and win $5,000"

Link to comment
Share on other sites

A Forex margin call happens when a client's account equity falls below the required margin.Traders may avoid margin calls by either using stop loss orders or maintaining adequate funds in the account.have check with the brokers trading condition, different brokers giving vary margin calll level and stop out level, well got one account with Tickmill given condition Margin call / stop-out:100% / 30%.

Link to comment
Share on other sites

A Forex margin call happens when a client's account equity falls below the required margin.Traders may avoid margin calls by either using stop loss orders or maintaining adequate funds in the account.have check with the brokers trading condition, different brokers giving vary margin calll level and stop out level, well got one account with Tickmill given condition Margin call / stop-out:100% / 30%.

Yes, but we still be able hold our position until we reach stop our level. But we must make deposit again if we want to keep hold our position longer. And that's right every broker has different margin call level and stop out level.

Link to comment
Share on other sites

Every broker also provide different maximum leverage for their clients. And as a trader, we only can maximize for trading. Being disicpline, we will get better result. But we also must understand market movement. Both analizing skills and management skills must be balance.

"Invite your friend, get $10 and win $5,000"

as in instafore that provide leverage different, but for now I am more comfortable trading with leverage 1: 1000 for trading with high leverage the opportunity to get a large profit will be more open and trading discipline is also very necessary

Link to comment
Share on other sites

I really believe leverage is very good system for us. Because, we traders get enough trading facilities with our low trading investment for this leverage system. But, leverage is not everything. Because, the quality of a Forex broker depends on their trading facilities and securities. Capital security is very important question for traders. For this reason, I have selected GCI Financial trading broker as my trading partner. Because, this regulated trading platform has 12 years market experience and they are honored as ‘Best Forex Broker’ for several times. So, I believe my trading capital is very secure in this trading platform. Actually, I never look any kind of transaction problem to use this broker.

Link to comment
Share on other sites

margin and leverage choose an enormous influence on our trading because of the greater leverage chosen will be smaller margin required so that it will be profitable for us. By doing so we are able to trade with the maximum and comfortable. in instaforex we can trade with leverage 1:1000

It is two constituents of trading allowing you to open and maintain position, comparable to other average positions on the market. I use Hotforex 1:500 leverage as it is enough risk for me, and never risk more than 3% of my deposit what is 300$ per trade). Don't forget about money management plan as its very important for safe trading.

Link to comment
Share on other sites

One of the key differentiators between hedge funds and other investment vehicles is the use of leverage. Leverage can be yourbest friend one day, and your worst enemy the next. Everyone knows that leverage will accentuate both gains and losses. my current brokers Tickmill offer 1:500 max leverage, trade from 0.01 lot; I respect them for not offering an extreme leverage such 1000 or even 2000 leverage ratio, which obviously dangerous for any new traders,and none of any expert traders suggested such leverage ratio.

Link to comment
Share on other sites

One of the key differentiators between hedge funds and other investment vehicles is the use of leverage. Leverage can be yourbest friend one day, and your worst enemy the next. Everyone knows that leverage will accentuate both gains and losses. my current brokers Tickmill offer 1:500 max leverage, trade from 0.01 lot; I respect them for not offering an extreme leverage such 1000 or even 2000 leverage ratio, which obviously dangerous for any new traders,and none of any expert traders suggested such leverage ratio.

Leverage can help us when trading, but it also will kill us if we doesnt know how to maximize leverage that we will use for trading. Although our broker provide high leverage, we can use lower leverage for trading.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • 👍 Join TopGold.Forum Now

    We Connect  Money Makers With TOP Earning Opportunities!

    Join over 25,000 members and 700 businesses on their journey to strike GOLD. 💰🍾👍

    👩 Want to make money online? 
    💼 Represent a company? 

⤴️-Paid Ad- TGF approve this banner. Add your banner here.🔥

×
×
  • Create New...