Wednesday, August 11, 2010

What is Leverage?


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Email 4: "What is Leverage?"

Leverage gives traders the ability to increase their purchasing power in the market. Without it, a forex trader would need to front $100,000 in order to control a single standard contract, making forex inaccessible for many.

Leverage was introduced to help lower the barrier of entry by allowing a trader to open a contract with just a portion of the contract value; the rest of the contract is provided by the broker or bank. Traders with Interbank FX can trade up to 100:1 leverage, which means a trader can control a standard $100,000 contract with just $1,000.

Continue Reading at Interbank FX

Sincerely,

The Interbank FX Team


www.xe.com/currencytrading · www.interbankfx.com











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