Friday, June 29, 2007

Understand Forex Leverage

It is very important you understand Forex leverage if
you are serious about earning profits from trading.

This leverage, or margin as it is more correctly known,
is the relationship between the actual amount of funding
you have in your trading account, and the value of the
currency controlled.

Competition between brokers in the currency market has
resulted in offerings of up to 400:1 margin accounts. The
effect of this high margin is a small change in price will
translate into a much larger change in the bottom line
of your account.

Profits and losses will happen proportionately quicker as
the margin ratio increases.

Click here to learn more about how leverage impacts your trading dollars...