Enhanced trading financial leveraging by borrowing
What is Forex trading enhanced financial leveraging?
The traders on the Forex trading contracts exchange rates of currencies. Since the movement of currency exchange rates can be very small, traders use leverage to increase the likelihood of profits.
The following is an example of a detailed step by step:
I decided to open a trading contract the view of the following elements:
First, a pair of currencies for trading - for example EUR / USD
The direction of trading is to buy euros and sell U.S. dollars
Let's assume that the price 1.3500
The value of the contract - 100.000 euros
While the trader you bought the contract, believing that you will profit, "he once to close (terminate) the contract
If I was right (for example: the exchange rate rose to 1.3600) then you will profit: per euro in this decade has won 1 U.S. cents. With a total profit of 1000 dollars (100.000 × 1 cents).
Anyway, do you need to 100.000 euros in order to fully open this contract?
The answer is: No - you can do trading through Leverage: What is needed is that the risk of rolling just for example, with 1:100 of the value of the contract. And thus to open a 100.000 you will need to 1000 dollars in the reality. If there is a loss and decreased the value of the contract as a whole to 99.000, then the deal will close automatically as the "warranty" by the rolling was 1000 U.S. dollars only
Please note that the leverage provided in the Forex market is usually between of 1:50 to 1:200. And using leverage to make your more money into circulation for the balance of your account where you can raise in their possession to your account - and that means you use what you have in order to increase the amount you can trade it and increase your profits when they succeed in trading in the right direction for a pair of currencies. In return, when a loss: the higher the leverage, higher whenever you are prone to close your deal is automatically faster.
How is the financial leveraging work?
Trading financial leveraging work by establishing a rate you can use every dollar in your account. The money put into circulation is the money that you risk actually called the money "margin" or the amount of risk. The ™ Easy-Forex rates raise the start of 1:50 and up to 1:200 (please note that in the United States up to 1:100 only)
For example: if you invest 100 dollars and you lifted at 1:200, then you have the 200 dollars traded for every 1 dollar in your investment (margin). If I started trading Bistosmark of $ 100 you can buy a value up to 20.000 dollars (200 × 100).
Why Trade Finance crane?
Forex markets, trading financial leveraging is to create the possibility of greater profits. And the necessary leverage as Forex trading includes Osardiilp differences. Could be the difference a small part of the penny.
With such small amounts it may take a long time to make a profit Magdy initial investment as well as larger. Using the leverage you can get a return on your investment faster using smaller initial deposit. Forex trading is very quickly. We must be careful "when you use leverage. Whenever the rate of leverage used the more the chances of losing your investment over the initial currency pair when it goes in the opposite direction of your investment.
We recommend that you do not risk more than you can accept losing.
What is the "margin trading"?
"Margin trading" is the amount that you deposit in the contract, which opened by the Forex (the investment risk of it). Vostae trading on the Internet must make sure that traders are able to pay if they lose, when they trade and the traders Biida money in the account can be used to cover any losses they make. This amount is also called "minimum insurance."
Using margin trading and traders can invest in markets that are smaller than the value of a deal they can do is already high. And trading using margin trading can increase profits but can also increase losses.
Rates of profit and loss when you lift your trading
As mentioned, margin trading is your investment. Thus, you invest a margin of $ 1000 in a contract worth $ 100,000 and this being a rate increase if they moved 1:100 currency exchange rates, for example, 0.5 will be a 50% change in your margin! Where the contract was similar to the value of the margin to 100 times the change in value of 0.5% to 100% greater or 50
Can you reduce the risks?
You can reduce risk by using levels of "stop loss". And those rates are determined by you trader. You choose a rate to be far fewer rate you want to access it. If it reaches the market this rate, your deal is stopped automatically, and thus do not lose more money.
And where thou will identify the rate you can control Bistosmark. You can make sure that you will not lose more than you are willing to lose. In the same way you can determine the rate of "withdrawal - profits"
Will be shut down when your deal is reached to the rate of profit established by you. Payouts easy for you to control your trading without having to monitor the market and your attitude constantly.
You can change Madlatk-set at any time as long as your position was still open.
It is necessary to know that the full guarantee of 100% of the pre-set rates is impossible as the market conditions that may affect suddenly in circulation. For example, can change suddenly and quickly and they shall be involved in forex trading are unable to achieve the rates specified in advance as the trading environment suddenly went out of their control.
Aimed ™ Easy-Forex to ensure the protection of working as much as possible. Efforts ™ Easy-Forex All that can, all efforts to ensure that the rates specified only if there are unusual circumstances in the market prevent them from performing this command.
If I wanted to do trading in the Forex markets you can open a free account.
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