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Forex ever crossed your mind ? But you have a problem with the huge capital you need or the great effort required to accumulate abundant profits? We have good news for you, as you can now overcome this hurdle through leverage, which is a method that is somewhat less common in its effectiveness. In this article, we will mention all the details you need to know about leverage, its advantages and disadvantages, in addition to how to use it to achieve a large profit.
Leverage is simply a form of borrowing that you undertake during the Phone Number Data trading and investment process in order to increase the returns and gains of that process. To make the picture clearer for you, let us assume that you want to trade, but you only have $100, but you want to increase your profit. So you borrow $900 to have $1,000 with you while trading, so your profits will theoretically multiply 10 times what you would have gotten in the first case. This is exactly what leverage means. But leverage goes both ways as well. Just as it can make you a huge profit, it can also make you a painful loss. Read also: Forex learning guide How does leverage work? Many trading brokers provide their clients with financial leverage services.
This is done through several ratios, some of the most famous in the Forex market: 1:25, 1:50, 1:100, and other leverage ratios. Here, for example, 1:100 means 100 times the basic amount that you will put in the trading process, and you can imagine the amount of profits you will achieve if you get any return with this huge number. Now you may be wondering: why would brokers loan anyone this money to trade? The answer is very simple, because the lender will profit from the borrower in all cases, whether he wins or loses. If you make profits, he will take his percentage without making any effort, and if you lose, he will not be harmed and will recover his money. The loss you incurred in your transaction will be deducted from your principal amount without affecting its funds.
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發表於 2024-3-3 15:00:45