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The concept of leverage trading and the way to proceed

{}Posted in2023/2/26 4:54:38 | 5Browse

F ForexrebateforExness cashbackforexexnessvestors who are new to the foreign exchange market, facing the choice of forexrebates, do not know whether to choose a large or small leverage, which Forex rebate for Exness more beneficial to their own? The following is a detailed introduction to help investors choose a suitable number of leverage I. What is the meaning of leveraged forexcashrebate?  What is the concept of leveraged trading? Let us explain that leveraged trading, also known as virtual trading, margin trading is the investors own funds as a guarantee, from the bank or foreign exchange broker to provide financing to enlarge the foreign exchange transactions, that is, to enlarge the investors trading capital financing ratio size, generally decided by the bank or broker, the greater the proportion of financing, the customer needs to pay less money as for Other here also do not explain too much Second, how leveraged trading is carried out Leveraged trading is based on establishing an available ratio for each dollar in your account The money you put into the transaction is in fact the money at risk It is called margin or risk-bearing funds For example: if you invest $100, set the leverage ratio of 1:200 then for the account investment funds (i.e., margin) in If you start trading with this $100, you will be able to trade up to $20,000 (200x100) The presence of leverage in the foreign exchange market increases the chances of greater returns Leverage is necessary because price changes in forex trading are small and can be as little as a penny or less Just because the changes are small, you have to wait a long time to make a profit With leverage, you can get a quicker return on your investment with a smaller initial investment. When using leverage, you should exercise caution. In conclusion, leverage is a double-edged sword. Leveraged trading increases the rate of return and allows us to trade a larger volume with the same amount of capital, which can bring us greater benefits when the market is favorable, but high returns also carry risks and need to be chosen carefully.