moonchild
VIP Contributor
Forex leverage in simple terms means using a small account to enter large trades as long as the trade is going your way.
For example, if you enter a 0.01 lot size and it went according to your analysis, you can double your lot size to 0.5 lot size to maximize your profits and I think it's a very cool advantage in Forex Trading.
So if you believe so much in your analysis or if a currency pair is on a free fall, which means after a currency pair has passed a support or resistance then one can leverage his account to make more profit.
But on the other hand leveraging can be a double edged sword, because as we all know how unpredictable forex can be,it is careless to do because any time a reversal occurs that's the end of it and you will lose all your account.
It's very advisable to make sure you know what you are doing before leveraging your account, if you are not an expert in Forex Trading you shouldn't even think of leveraging account because most times you'll end up losing your account.
Leverage works best when you understand forex very well and you can afford to risk you account.
For example, if you enter a 0.01 lot size and it went according to your analysis, you can double your lot size to 0.5 lot size to maximize your profits and I think it's a very cool advantage in Forex Trading.
So if you believe so much in your analysis or if a currency pair is on a free fall, which means after a currency pair has passed a support or resistance then one can leverage his account to make more profit.
But on the other hand leveraging can be a double edged sword, because as we all know how unpredictable forex can be,it is careless to do because any time a reversal occurs that's the end of it and you will lose all your account.
It's very advisable to make sure you know what you are doing before leveraging your account, if you are not an expert in Forex Trading you shouldn't even think of leveraging account because most times you'll end up losing your account.
Leverage works best when you understand forex very well and you can afford to risk you account.