Leverage Forex

Leverage Forex

 Leveraged financing is a common practice in Forex trading, and allows traders to use credit, such as a trade purchased on margin, to maximize returns. Collateral for the loan/leverage in the margined account is provided by the initial deposit.  This can create the opportunity to control USD 100,000 for as little as USD 1,000.

There  are  five  ways  private  investors  can  trade  in  Forex,  directly  or indirectly:
•    The spot market

•    Forwards and futures

•    Options

•    Contracts for difference

•    Spread betting

Please note that this book focuses on the most common way of trading in the Forex market, “Day-Trading” (related to “Spot”). Please refer to the glossary for explanations of each of the five ways investors can trade in Forex.