Leverage


Leverage

Leverage

Leverage is the doubling of the invested amount to be able to make good profits in the forex market, and it is one of the most important terms traded or used in forex that you must know well, since it is the most important characteristic of the forex market, leverage allows you the ability to trade on amounts much larger than your capital The depositor and used in position trading, leveraged trading is also known as margin trading. You can open a small account in cooperation with intermediary companies, and then borrow money from the broker to open large deals.

 

For example: If the amount of your investment is $ 1,000 and the leverage is 1: 400, then this means that you can trade at ($ 1,000 investment amount * 400 leverage) = $ 400,000 that you can trade with, but this is only purchasing power, meaning that you cannot withdraw this amount, but You may only withdraw profits