Why Forex? Part 3

Why Forex? Leverage

Leverage is used by private investors as well as multi-national corporations and is a type of loan that you get through your market account. This is absolutely essential for Forex traders because currency is usually traded in units of 100,000. You can get leverage in different ratios but the most common are 200:1, 100:1, and 50:1. Sometimes you can find a broker that will give you 400:1. To get a better understanding of how leverage works, if you have a 100:1 ratio and $1000 in your account you will be able to trade with $100,000. This enables you to get much better profits but can also increase your risks.

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Link Why Forex?

http://www.why-forex.non-mlm.com