Traders trading in the foreign exchange contract on the currency exchange rate. And because the currency exchange rate movement is very small, using the power of leverage traders to increase their profit is likely.
Here’s a practical example step by step:
I decided to open a contract for trading and when these elements:
Mtajrh- pair of EUR / USD, for example,
Almtajrh- direction of buying the euro and selling of the US dollar
Price-to assume that 1.3500
Alakd- value of 100,000 euros
Being shops, you purchase this contract, believing that you will reap a profit as soon as the close (balance) of the contract. If you are rightly (for example, the price rises to 1.3600), then you stand to gain: for every euro in this contract gained 1 cents of the dollar. With the total, it will be a profit of US $ 1000 (100.000X 1 cents).
But, do you need all the 100,000 euros to open this contract?
The answer is: no. You can trade leverage strongly: be required stores to risk, for example, 1: only 100 of the contract value. On this basis, a contract worth $ 100,000 need only $ 1,000. But if there is a loss, the full value of the contract fell to 99,000, then the process is closed automatically, as “security” provided by the shops was only $ 1,000.
With the leverage power, you have the money to use in trading more in balance because you can “lifting” – and that means you use what you have to increase the amount that you can trade it and increase your profit when they succeed in trading in the right direction for the currency pair. On the other hand, when there is a loss: the higher the leverage the power, the more it is subject to the closing of your process is faster.
How trading works strongly leverage?
Trading is working aggressively leverage used by determining the rate for every dollar in your account. The money that you put into the process is money that actually run the risk of them. And it called the “margin,” or the amount that ventured it.
For example: if you invested $ 100 and raising it by 1: 100, you have $ 100 to trade in return for every $ 1 in your investment (margin). If trading Bastosmark to $ 100 beginning, you can buy up to a value of $ 10.000 (100X100).
Why is there trading strongly leverage?
There are trading strongly leverage in the foreign exchange market to create the potential for greater gains. Leverage the power necessary because the foreign exchange operations include a very small differences in price. The difference can be a very small part of one cent.
Such small amounts, it can take a long time the trader to make a profit Magdi, in addition to the initial investment is greater. Using the power of leverage, you can achieve a return on your investment faster and using smaller initial deposit. Get forex trading operations very quickly. When you use the power of leverage, you should be careful. The higher the leverage used force whenever possible loss of your investment increased when the currency pair moves counterclockwise investment.
We recommend Olatjaszew more than what you can accept losing.
More than what you can accept losing.
“Margin” is the amount you put it in the foreign currency that you are opening contract (investment risk him). You must ensure that intermediaries in trading online that traffickers can pay if they lose money when they trade. Traders put money in the account can be used to cover any losses they suffer. This amount is also called the “minimum security”.
With margin, traders can invest in smaller markets are trading process are already great. It can increase trading profit margin, but they also increase the loss.
Rates of profit and loss when Taatajerh strongly leverage:
As previously mentioned, your margin is the value of your investment. On this basis, invest a margin of $ 1,000 on a contract worth $ 100,000. This rate of 1: 100. If you move the currency exchange rate, for example, 0.5% would be a change of 50% on your margin. Since the contract was 100 times the margin, then it becomes a change by 0.5% to 100 times greater to 50%.
Can you identify your risk?
You can determine your risk by using the prices of “stop loss”. You, Department Stores decides those prices. Choose the lowest price is what you would like to go. If the market reaches that price, automatically will shut down your operation so as not to lose more money.
Because you’re so determined price, you can Bastosmark control. You can guarantee not to lose more than you are willing to lose.
In the same way, you can determine the price “for a profit.” Your operation will stop when the price of access to the profits that you specified. Bmtajrtk makes profit-taking easy control without being obliged to constantly monitor your position.
You can change the specified price at any time as long as the process is open time.
It is important to understand that ensure the specific price of 100% is impossible because market conditions can suddenly affect trading. For example, the market can suddenly change very quickly, and can be for those Alvena are trading in foreign currency should not be able to implement the specific price in advance because the trading environment suddenly went out of their control.
Works (Easy-Forex) to secure protection for the traffickers as much as possible. It made (Easy-Forex) every effort to ensure that the specified price, unless market conditions prevent them unusual than that.