What mean “Leverage” in Forex Market?

Leverage is one of the reasons many traders come into the forex market and the reason many traders leave without any money left in their account, many brokers including my own offer up to 200-1 leverage. With leverage of 200-1 you have control of 200 times the money in your account. If have $1000 in your account you can buy $200,000 using a leverage of 200-1. We will not be using anything remotely like that in this course. High leverage is a killer and can wipe out your account in one trade. Later in the money management section of this manual we will be discussing how to control your risk on each trade so that if the worst case situation happens you can withstand a huge amount of losses without losing your account. Again I DO NOT use high leverage and if you want to survive and build wealth in this business neither should you.

 

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