In an ideal Forex Market, you can only open trades with Volume of At least 1.
And to do this, you need at least 100,000 in your account.
But as you can see, you are able to open trades with volumes greater than 1, with much less account balance, how is this possible? Well the answer is leverage…
Note
1 is the Standard Volume.
A Standard Volume is Equal to 100,000.
Simple Math
Assuming you has an account balance of $200, and you choose a leverage of 1000:1 with your broker.
Simple math….1000:1 leverage*200=200,000
So with the leverage, although your actual balance is 200, your “leverage Balance” is 200,000. 200,000 is the “leverage balance” you have available to use.
Now, as I mentioned above.
To open a Volume of 1, you need 100,000 as your balance, but since you have a leverage amount of 200,000, you can open a volume of 2 (200,000/100,000)
This means, if you have an account balance of $200 with a leverage of 1000:1, you can still open a volume of 2!
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Thread: Leverage explained.
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17-08-2020, 07:42 AM #1
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Leverage explained.
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21-08-2020, 07:55 PM #2
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Leverage is basically an extra facility given by the broker to a trader. The more the broker give leverage, the more it gets popular. Leverage is an important tool in forex market. While any trader choose a broker, he should know about the leverage of that broker. Because leverage helps a trader to make big profit with small investment. I am currently trading with Tpglobalfx. They are giving me high leverage at 1:500. It helps me to maximize my profit. I can make profit consistently with their high leverage.
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24-08-2020, 01:54 AM #3
The use of existing leverage must be able to be considered well, this is done so that traders can be maximized in carrying out trades that are in line with expectations while on a real Tickmill account.
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03-09-2020, 10:07 AM #4
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Forex is a business that can be operated from staying at home. So it is perfect for this situation. And we have a lot of time in this COVID situation. So, we can think properly and make the right decision easily. I am also trading from my home in this COVID situation. My broker Forex4you helps me to make a profit from this market. They help me a lot to trade in this lockdown situation. I am making a profit consistently with the help of them. So, it is a very good time to earn money by sitting at home.
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07-09-2020, 05:38 AM #5
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in forex there will never be an instant, so that traders can be better and can be maximized in carrying out trades that are in line with expectations and are able to become Tickmill's trader of the month.
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08-09-2020, 04:14 PM #6
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I think this explanation about leverage is really good my broker, FreshForex provides a leverage of 1:2000. I use 1:2000
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09-09-2020, 05:23 AM #7
The use of existing leverage must be able to be considered well, this is needed and necessary so that traders can be maximized in carrying out trading activities in accordance with expectations with Tickmill.
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