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Justin Vaughan

What is leverage?

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Leverage allows a large amount of currency to be bought with a small investment. The amount of leverage available to a trader varies with the broker, for example 100:1, meaning that currency trades worth $ 100,000 can be made with an investment of $ 1,000. The word leverage originally meant the effect of using a lever to move a much larger object. TryMarkets offer 500:1 leverage facility for mini account.

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Leverage comes from risk and it is a loan provided by broker. Leverage has been considered as the most important topic of Forex trading which we can never neglect. A big amount of leverage is always expected by traders. It is mostly considered as the most crucial topic through which a trader can surpass his or her initial capital. Trade12 acknowledged this fact and offers the adamant high leverage more than 1:400.

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Leverage enables a trader to control much more funds than the deposited amount, and this makes forex trading a very lucrative venture. High leverage is usually favourable to skilled traders, but beginners are usually advised to use low leverage in order to minimize risks.

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Leverage is the ratio between trader's own funds and borrowed funds, traders who borrow from their brokers. Leverage 1: 100 means for a transaction you must have a trading account with the amount 100 times smaller than the number of transactions. Sometimes high leverage can make you lose. but FXB Trading has its own strategy to use it that can make you a fortune

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Leverage involves borrowing the amount of money needed to invest in something. In the case of forex, money is usually borrowed from a broker. Forex trading needs to offer high leverage in the sense that it is necessary for initial margin requirements so that traders can build and control large sums of money.

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When a trader decides to trade in the forex market, he or she must first open a margin account with a forex broker. Usually, the amount of leverage provided is either 50:1, 100:1 or 200:1, depending on the broker and the size of the position that the investor is trading. Leverage is helpful for earning more and that’s why I selected Trade12 broker from which I have the high leverage like 1:400 throug which I can easily exceed my trading capital.

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Leverage originates from risk and it is a credit given by broker. Leverage has been considered as the most imperative subject of Forex trading which we can never disregard. A major measure of leverage is constantly expected by traders. It is for the most part considered as the most essential point through which a trader can outperform his or her underlying capital. FXPM recognized this reality and offers the resolute high leverage up to 500:1. It likewise offers 100% deposit bonus.

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Often many traders ask me what is leverage? Is it good or bad? Let me tell you that leverage is a power. Power is such thing which can be both good and bad. It depends on how you use it. Leverage is a power which enables to trade bigger than your investment. I get 1:2000 leverage from my broker AAFX. But if I don’t use proper risk management for using such high risk I will fail to manage my investment.

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Leverage is always been considered as a good facility provided by broker. Leverage indicates to 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. 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. With Trade12 broker I have the high leverage amount like 1:400 through which I can take more risk while trading and it extends my trading profit.

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Leverage is the ratio between trader's own funds and loan funds, a trader who borrows from his broker. Leverage 1: 100 means for a transaction you must have a trading account with the amount 100 times less than the transaction amount.

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