Is it because of the great opportunities, profitable tactics, two-way mechanisms, or do you want to learn more about trading?
What are your directions, which is clear, if you have the intention of learning everything about trading, because your opportunities to become a successful trader will be wide open.
But of all the things you want to learn, there is one of the most important aspects of trading that you may not encounter from other financial trading instruments, namely leverage.
Until this knowledge of leverage is important to reach the moment before you choose to enter the world of trading in order to profit from every opportunity that comes up, especially if you can open a beginner trader.
What is Leverage? best apps for trading forex
Take advantage of the use of debt funds with the aim of increasing the unbalanced strength (return) of the investments that have been made.
Because there is leverage, some traders, including you, can make business transactions with less capital than the capital that should be used
Use of Leverage in Trading best apps for trading forex
When business transactions are carried out without leverage, because the capital needed for the business must be equal to the value of the current contract.
The contract size for each business transaction itself is worth $100,000 (100 thousand Dollars). Although in fact, every day in the market there are many opportunities that you can get and sometimes not all of those times can turn a profit for you.
Can you imagine, if one business transaction appears to be a loss, more or less how much loss can you feel?
This is where the special advantage of leverage comes in. For example, using 1:100 leverage to make a business transaction with a contract size of $100,000, you need to spend only $1,000 (which is stated with margin).
In trading, leverage is generally shown in the form of certain divisions, for example:
– 1:25 (one band twenty-five)
– 1:50 (one ribbon fifty)
– 1:100 (one in one hundred)
– 1:200 (one to two hundred)
– 1:400 (one in four hundred)
– 1:1000, and so on.