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What is leverage and precautions?

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Jan 14, 2021 10:06 am
#1
Asher User

Posts: 245
Member since: 31/03/2020

Leverage or margin loan is the maximum number of loans your forex broker will give you on top of your capital.
Suppose your balance or capital is 100. If you use 1: 200 leverage, your broker will lend you up to a maximum of 200 times when you trade. Now it's up to you how much you borrow. So, with 10 dollars you can trade 10x200 = 2000 dollars.

Feb 22, 2021 09:16 pm

Posts: 227
Member since: 05/06/2015

It can be totally amazing or can be devastating, it’s dependent on how we take it. I use it wisely, which helps. Right now, with FreshForex broker, I am very happy in every way, especially to do with low spreads, smooth trading platform and much more, it all helps a lot.

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