Wednesday, 19 November 2008

Basic: Leverage and Margin

Leverage & Margin


Leverage trading, or trading on margin, means you aren't required to put up
the full value of the position.

Forex trading offers more leverage than stocks or futures - up to 200 times
the value of your account. Of course keep in mind that increased leverage also
increases your risk.


FOREX.com: No debit balances, no margin calls

At FOREX.com, your risk is only limited to funds on deposit. There are no margin
calls in forex trading, so if your account falls below required levels, for
your protection we will close out all positions automatically. You'll never
lose more money than you have in your account.

More leverage means more opportunity - and more risk

It's crucial to remember: increasing leverage increases risk. To limit downside
risk, monitor your account regularly and use stop-loss orders on every open
position.

Source : www.forex.com

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