movements are only fractions of a cent. In general, leverage is expressed as a ratio between the amount of capital you provide to the amount a forex broker will lend you.For example, take the example of the ratio of 200:1. What this means is that the forex broker will lend you 200 times the amount of money you provide. Just keep in mind the more leverage you use, the more risk there is in getting a margin call, however you also have the potential for larger profits and vice-versa.
In general, when starting out with a small amount of capital; make sure that the forex broker you are using offers a wide range of leverage options. This will give you more control over the risk
No comments:
Post a Comment