Margin and lever

Margin and lever

Margin and leveraged foreign exchange trading is the most key factors, the size of leverage you can directly apply to the platform changes, simply leverage can make the transaction amount is greater than the amount of funds investors initially invested. At the same time, investors need to deposit a security positions such as collateral.

At the same time, the margin as accounts into gold and continuous trading must be money, rather than as a fee or the transaction cost. It is from your into gold amount allocated and assigned reserve funds for your account. The size of the margin is usually the percentage of the transaction for you (such as 2% or 5%), such as margin of 2% trading $1000000 need to deposit $20000.

Using leverage can magnify the amount of actual transactions and maximize profits. In general, this means that investors can control more than 100 times the value of the actual investment.

At the same time, it also means that a potential trade problems will affect investors. Leverage role also magnify losses at the same time, and when the market moves losses increase amplitude is very big, if do not have enough deposit will not be able to cope with the resulting risks. If you had no prior trading experience or lack of experience, we strongly recommend that you consider the actual financial condition choose low lever. Because in the absence of experience to choose high leverage losses caused thereby, is one of the most common mistake beginners.

How to apply leverage?

If on your Financial agent trading account with the amount of $10000, under the condition of the lever is 100 times, if you only want to use 10% of the account amount is $1000 for a margin call, you still can make a $100000 ($1000 x100), because of the deal, the equivalent of Financial agent provides you with similar to the same credit card, and this is leverage role. And if you do not use the leverage of the deal, you may only $1000 worth of deals. So the use of leverage makes it possible to make larger profits by using smaller amounts of investment.

Risk monitoring

Due to the amplification lever will profit and loss, so to understand use of the risk of highly leveraged foreign exchange trading is very be necessary, investors need to be according to your own trading style needs to choose the appropriate level of leverage.
many traders will use the expert advisor (EA) this automated trading program, a lot of EA program will also have to do according to accounts limit of moderate volume trading. However, not all of EA program will have effective management tool, so for traders, artificial manual to check the status of their trading accounts with timely additional margin is still very important.

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