Posts Tagged ‘“Leverage is a two-way street.”’
What is Leverage in the Foreign Exchange Market?
November 12th, 2009
The textual definition of "leverage" is to have the ability to control a large sum of money, without using or using a small part of their own money and borrowing the rest.
For example, in Forex, you can control $ 100,000 with a deposit of $ 1,000. Their leverage, which is expressed in proportions, is now 100:1. Now is controlling $ 100,000 with $ 1,000.
Let's say the $ 100,000 investment rises in value to $ 101,000 or $ (more...)
Tags: "Leverage is a two-way street.", The foreign exchange market