PDA

View Full Version : Margin and leverage



oussama94
05-28-2017, 00:14
Through the use of leverage, traders are able
to invest a small amount of money and trade
much larger deal sizes. This is useful because
the movement in currency rates can be very
small, and larger trades represent larger
profits/losses for every pip change in the rate.
Leverage allows you to trade with more money
than you have in your account, because you
effectively “leverage” your free balance to ****
a larger trade.
Leverage is shown as a ratio, for example 1:100.
Note that leverage amplifies both potential
profits and losses alike.