Wednesday, December 14, 2011

What is leverage?

Leverage - the ratio between the collateral and allocated under its borrowed funds: 1:50, 1:100, 1:200. 1:100 leverage means that you do for the transaction must have a trading account with a broker an amount 100 times less than the amount of the transaction. Example: You buy 1.0 lot USD / JPY. With 1:100 leverage necessary margin would be $ 1,000, at 1:200 - $ 500, and at 1:50 - $ 2000, but the cost of this item is not changed.

Leverage when opening an account for Forex, is automatically set to 1:100. If necessary, you can change the shoulder by contacting technical support.

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