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Leverage |
| In forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make larger profits, and at the same time keeps risk capital to a minimum. For example, if you choose 1:400 leverage, which mean that a $50 deposit could execute a buy or sell of $20,000 worth of currencies. Similarly, with $500 you could trade with $200,000. Without the proper risk management, this high degree of leverage can lead to large losses as well as gains. |
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Deposit Amount |
Leverage |
| $25 - $5,000 |
Up to 1:400 |
| $5,000 -$50,000 |
Up to 1:200 |
| $50,000 + |
Up to 1:100 |
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*Margin Call 80%, Stop Out 50%
When margin level hits 80% the mt4 platform will issue a margin call warning you of low margin and more money is need to be deposited to keep the positions open. If the margin reaches 50% the mt4 will begin to close positions starting with least profitable. |
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| © Copyright 2005 - 2012 Right Win Group. |
| HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. |
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