Disclaimer: Forex trading involves high risks, with the potential for substantial losses and is not suitable for all persons. The views expressed in this blogsite are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of Global Forex Trading. Excerpt from: Forex Training
|  | | November 09, 2007 | | Leverage is part of currency trading | One of the main forex trading basics is leverage. Leverage is what makes currency trading so potentially lucrative. It is also what makes it risky as well.
Leverage: a definition
Leverage is when you initiate a transaction without needed the full amount of money. You make a small deposit (called the margin) and you are allowed to trade with a larger amount of money.
GFT offers up to 400:1 leverage. This means that if you have a deposit of $2,500 (the minimum for a regular forex trading account), you would be able to work with up to $1 million.
| Topic Tags: forex trading, forex trading account, forex trading basics, forex trading leverage, leverage, leverage currency trading currency trading | |
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