Leverage Forex is basically you can perform operations with larger positions that already exist in your trading account funds. This amount of leverage is calculated as a ratio.

Example 500: 1, 100: 1 or 50: 1. If you had $ 1,000 in your trading account operating tickets worth $ 500,000, your forex leverage was 500: 1. Leverage is a way for you to enhance what you have already using in their favor, um did not understand it? Come on! Financial Market alavancagem forex serves to enhance your results.

Example: When we see a leverage of 1 to 500, the theory is that you will place 1 and the broker or market places 500 on every $ 1 dollar you put the market puts 500, that is for you to open an order approximately $ 500,000 you need to have only one o'clock dollars

The concept of Forex Leverage

Is there a way to calculate that varies depending on the volume, depending on the current price of the pair that you are operating. The forex leverage is used to enhance the results that can be either positive or negative and that is where the danger lies my friend, if you are not careful and do not use aalavancagem in forex the right way, you may be going from heaven to

hell , leverage has to be and use consciously.

Oh you can ask, "How do I open an order of 500 000 for example if I have these 500 million, only have 1,000? If I lose I will owe to the broker? And the answer is No! Definitely there is no such possibility, because there are protections for brokers that in case of loss, they lose only this maximum amount you have (won).

Some brokers have your stop out at 100% other 80%, 50%, 20% coming to 0%, which is one level margin, this is something that 99% of people who operate Forex (since even experienced beginners) do not know what is margin, margin level, how to get that result!

Ask yourself: I know the margin level that my broker set for me?

As I said, if you do not know your bank you are among the 99% of investors, but know that you are losing or will lose money if you do not find your bank as soon as possible.

What is margin in the Forex Market?

The margin in trading is the amount to cover any credit risk that may arise in the course of foreign exchange transactions. The margin is calculated as a percentage of the size of the position taken (5% or 1%, for example), and the only reason to have funds in your account is to ensure the margins appropriately. For example, with a margin of 1%, a position of $ 1,000,000 requires a deposit of $ 1,000.

What Scenarios Forex Leverage?

The potential for considerable gains is on a leverage advantage, a small counter fluctuations assumed position which can lead to both the gains as s

losses immeasurable of its capital invested in a matter of minutes, with losses greater than the capital invested in the case of extreme sudden fluctuations, in this case the position is immediately closed by the financial intermediary and the investor is responsible for the debt created. As transactions occur with high level of liquidity for 24 hours a day, large degrees leverages become customary in this type of market.

Leverage in Forex has risk?

On the one hand, even if you operate with leverage in small quantities, may have significant gains. But on the other hand, can also be drastic losses if you can not manage and measure their risks properly.

What is Stop-Out?

The stop-out refers to equity level at which your open positions are automatically closed, the levels range from brokerage to brokerage firms.