Lens1000
VIP Contributor
If you are looking for a sufficient tools to trade on Forex. Don't go no where, leverage and margin as got you covered. It is pertinent to understand the concept of margin and leverage before you dive into Forex trade
The tools allows you take control of higher positions during the trade. You can take higher position that is more than the amount in your balance.
Margin is a term used in forex and it means the amount of money in the account that will allow you open a trade and take leverage trading position.
Leverage is simply a term used in forex, it allows you control higher positions more than the actual amount in your account . It is usually expressed in ratio. For instance, if the leverage is 100:1, it means with $1 you can control a position worth $100. This determines the degree of profit as well as the degree of loses the could be incurred in forex trade. It act like a double egde sword
To explain more, if you want to buy or sell10,000 of USD/ NGN you will need $10,000 in your account without leverage. But with 100:1 leverage the trader can take a position of $10,000 USD/NGN with just $100
On a last note, in leverage, margin privileges are extended for traders . It's always advisable to maintain the minimum margin for all open positions
The tools allows you take control of higher positions during the trade. You can take higher position that is more than the amount in your balance.
Margin is a term used in forex and it means the amount of money in the account that will allow you open a trade and take leverage trading position.
Leverage is simply a term used in forex, it allows you control higher positions more than the actual amount in your account . It is usually expressed in ratio. For instance, if the leverage is 100:1, it means with $1 you can control a position worth $100. This determines the degree of profit as well as the degree of loses the could be incurred in forex trade. It act like a double egde sword
To explain more, if you want to buy or sell10,000 of USD/ NGN you will need $10,000 in your account without leverage. But with 100:1 leverage the trader can take a position of $10,000 USD/NGN with just $100
On a last note, in leverage, margin privileges are extended for traders . It's always advisable to maintain the minimum margin for all open positions