Margin and Leverage

“leverage” is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest.

For example, to control a $100,000 position, your broker will set aside $50 from your account ( Like In FBS Forex Broker ). Your leverage, which is expressed in ratios, is now 2000:1.

You’re now controlling $100,000 with $50.

Let’s say the $100,000 investment rises in value to $101,000 or $1,000. If you had to come up with the entire $100,000 capital yourself, your return would be a have 1% ($1,000 gain / $100,000 initial investment).

This is also called 1:1 leverage. Of course, I think 1:1 leverage is a misnomer because if you have to come up with the entire amount you’re trying to control, where is the leverage in that?

Fortunately, you’re not leveraged 1:1, you’re leveraged 2000:1. The broker only had to put aside $50 of your money, so your return is a groovy 400% ($1,000 gain / $50 initial investment).

Leverage is really the best thing that is created; it allows traders like me who are unable to invest big, but we have to be really judgmental as to which company to select trading with. I really love to trade with OctaFX, it has great leverage up to 1.500 for all accounts, but the major benefit that I get is the trading atmosphere that I receive is just priceless plus all my trades are executed instantly without ever facing any requotes.

Concept to determine the function of leverage and margin, we can use a calculator trader. traders calculator is a tool that can be used to determine the function of the margin, leverage based lot and currency pairs used.

I use a calculator trader from FBS broker to determine the value of a pip value of my trading plan based on the currency pair that I use

I also do a calculation of margin on each trade based on the leverage that I use so I could find out how much margin is used. I usually use a lot 0.01 and a leverage of 1: 500 when I trade in Armada Markets. with this margin calculator we can calculates the minimum account balance required in order to be permitted to open the specified trade at the selected leverage and lot size.

Trader must understand about margin and leverage in forex. Leverage in forex will help us to be able to start trading in forex with small amount. I also get maximum leverage in TenkoFx. I use that leverage for trading. If we can maximize leverage from broker, we will be able to get maximal result although we just use small amount in forex

Leverages are good but it should be utilised wisely, or else its a loosing game most of the new trader in order to increase the volume use high leverage, but if the make a loosing trade then they have to pay the excess amount.

Leverage up to 1:500: It means you can trade $100,000 (1 lot) worth of currency for only $200. Minimum trade is 0,01 lot, which is $1,000. Leverage leads to an increase in risk but also in potential profit. Now, I am using this leverage on my trade in my broker and i also using Margin calculator to calculating the margin

http://i.gyazo.com/657a6c391e75eb0ba1999fee88d0c351.png

We can try to maximize leverage to make margin be smaller. In forex, i use 1:500 from TenkoFx to trade in forex. Although i also use small amount, but i keep try to more improve my skills here. I try to learn from experience

"Invite your friend, get $10 and win $5,000"

Most of the traders go for high leverages without realising that if they loose they have to repay in equivalent ratio, its a big risk and has to be utilized wisely.

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Originally Posted by orni308

Most of the traders go for high leverages without realising that if they loose they have to repay in equivalent ratio, its a big risk and has to be utilized wisely.

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That's right, if we pick a high laverage it mean a high risk too. More higher laverage that we choose it mean more higher risk that we face when we do our trading activity. That's all is why we have to be veru careful when we have to choose that trading condition. I think we should've to test all the laverage available first with a demo account, so we can really know how high the laverage that we have to choose for our trading activity.

Margin and leverage are good things to consider in trading because these things can help you to trade with small amounts and place large orders but it depends upon the trading styles of the individual traders that what they want to achieve from trading because some traders don't like high leverage because that can also have negative impact in the form of high losses as well.

We should always consider margin and leverage if we want to get proper success with low investments but in case if we don’t have good margin or leverage support then we will find it seriously tough. I trade with OctaFX broker and they have best of both while their leverage goes up to 1:500 then there is their margin level which too is brilliant and is 25% so that really helps me in every possible way and I can get success easily.

We must try to be better trader if we want to get maximal result. Leverage which we get from our broker, must be maximized as well as possible. I try to maximize leverage in TenkoFx too. Although it's only 1:500, but using this leverage, we can start trading with small amount. And we should use small lot size first.

Both of them are really important for the traders, Low spread and high leverage (With Risk management) is key to success, and FBS Markets provides both these features.

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Originally Posted by Rahul247

Both of them are really important for the traders, Low spread and high leverage (With Risk management) is key to success, and FBS Markets provides both these features.

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The best trading condition in a broker, must be maximized and if we want to get more maximal profit, we must try to be better. We can start trading with small amount here. For trading, i already get maximal result in TenkoFx.


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I agree with you on that fact of good features from the broker, hope to get some good features from my broker in the Future as well.

Leverage makes the forex both a risky as well as a profitable bussiness.
to be able to truly profit from these tools you'll have to have a great money management!

These are 2 key features as far as selection of broker is concern, so for traders it is really important to chose a broker with High Leverage and low spreads.

margin and leverage each other's influence in forex trading because we chose high leverage so required margin will be smaller so the chance we will be more extensive. but be careful with trading using high leverage because the risk is too great

FBS Markets has been a good broker for me in that regards, High Leverage offer and low spreads along with many other good features for the traders.

Trading with leverage 1: 1000 was very profitable for traders because of the substantial leverage will allow us to maximize our capital well. For that try to use leverage well and maximum.

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Originally Posted by gaban

Trading with leverage 1: 1000 was very profitable for traders because of the substantial leverage will allow us to maximize our capital well. For that try to use leverage well and maximum.

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Leverage will make us be able to trade in forex although we use small amount. In TenkoFx, i only use 1:500 for trading. Using this leverage, i try to more increase profit. I also try to use demo account first to make sure that i already choose the right leverage for trading

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I'm trading with FBS Markets and I am happy to say that they are offering both these features with best possible features to clients for their success in the Market.

yes, of course, by then we can leverage trading with small capital. so it will make us able to trade with the maximum. I like trading using high leverage such as 1: 1000 in instaforex,. By using leverage well then we will be get big profit

The broker which is offering Good features like Leverage and margin is the one which is the best one for the traders in the market, for me it has been FBS Markets.

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Originally Posted by Rahul247

The broker which is offering Good features like Leverage and margin is the one which is the best one for the traders in the market, for me it has been FBS Markets.

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Don’t get me wrong mate but what you mean by features? I mean it’s necessary to have margin and leverage so it’s not any feature that can make a broker good or bad. It’s high or low that indeed plays the deciding factor. I trade with OctaFX broker and it has really low spread of 0.2 pips, so that’s so handy to be working with and it allow us to trade with complete ease and we are able to perform so much better with such supportive offers.

the higher the leverage that we use will be smaller margin required so that we will be successful in forex trading. therefore we need to continue to improve trading skills if we want to trade with large leverage as 1: 1000 because a large leverage will also be a big risk

Margin and leverage are 2 most important things to notice, and in that perspective FBS Markets has been a great broker for these services.

leverage in forex trading is very important, because of the leverage it will allow us to trade with the maximum, and therefore we need to use the leverage properly and in choosing the leverage it must be adapted to our ability

Great that these are the features every trader is looking for, FBS Markets is offering some of the great features for the traders.

margin and leverage have a close relationship. Trading using high leverage, the margin required is very small so it will be profitable for traders who have small capital. therefore I choose to trade using leverage 1: 1000 of instaforex

your strategy or system also has to be profitable even if the leverage is lower than 1:1000.
this leverage helps, but your strategy can't be build upon this.

the higher the leverage used the more small margin, therefore we need to use the leverage it well, and not only that, to choose the leverage should be adjusted to our abilities that will allow us to trade with a maximum

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Originally Posted by gaban

the higher the leverage used the more small margin, therefore we need to use the leverage it well, and not only that, to choose the leverage should be adjusted to our abilities that will allow us to trade with a maximum

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choosing the right strategy with the right leverage will provide benefits to the trader. now I try to maximize trading by using leverage of 1: 500 in TICKMILL

of course, for that we need to choose the right leverage. to find the right leverage we need to first examine the leverage to be used for trading so that we can get the right leverage. we can use a demo account to test the leverage