What is Leverage? Ideal Leverage For Forex Trading

In the world of forex trading, there are main factors that need to be understood and may not be found in other investment instruments, namely leverage. Leverage is a type of interest-free loan provided by a broker. Traders can use leverage to increase their profits, or traders can use leverage to reduce margins (the collateral demanded by the broker for open positions).

The importance of understanding leverage aims to achieve good money management by managing the margin you have and making a consistent trading plan. The concept of leverage is indeed very profitable in forex trading but is also very risky if used in very high leverage (over leverage).

Leverage is closely related to the margin and total lots that can be used. The higher the use of leverage will lead to a minimum margin, which means that there is less minimum guarantee paid for each transaction but the larger the total lot that can be used in trading.

The ideal leverage that has been used by several traders is the ratio of 1:100 and 1:200. Of course this depends on the margin used by the trader for forex trading. At this ratio, traders can earn significant and real profits from margin trading. Leverage with a ratio of 1:100 means that the trader has $500 in funds and can open a buy or sell position with a value of $50,000. This is also influenced by risk management by always keeping a reserve of funds for potential margin calls and stop outs when active trading takes place.


Note:

For further information, you can call 03315106055.
FREE Trading soft copy material! Text 081258066174 on WhatsApp.
More information about paid premium class (guided forever until get consistent profit and independent), kindly visit our website at www.wijayatrading.com 

Comments

Post a Comment

Popular posts from this blog

Tingkatan Seorang Trader

Image
Sebelum menjadi trader sukses, perlu dipahami bahwa ada berbagai macam tingkatan trader forex yang harus dilalui. Tingkatan-tingkatan tersebut biasanya dibedakan dari beberapa kriteria. Jika dilihat dari pengalaman, pengetahuan, cara berfikir, dan sikap mentalnya, seorang trader dapat dikategorikan dalam 5 tingkatan. Trader Pemula Seorang trader pemula pada umumnya masih merasa asing terhadap pasar forex. Trading forex dianggap sesuatu yang baru dan mungkin agak unik atau mengasyikkan. Mereka cenderung ingin mengetahui segala hal yang berhubungan dengan trading dan pasar forex dengan cepat dan instan. Baik analisa fundamental maupun analisa teknikal dipelajarinya dengan cepat. Trader pemula selalu mencari dan mempelajari cara-cara yang gampang, sederhana, dan segera dapat digunakan untuk trading. Pada umumnya, mereka mengharap profit besar dari trading forex. Trader Profesional Dari sebutan "profesional" yang disandangnya, memang profesi utama trader di tingkatan ini adalah t
Read more

SNR, BEST TRADE STRATEGY!

Image
SNR (Support and Resistance) is fairly popular in the world of forex trading. This is one of the most frequently used techniques in technical analysis. Without it, traders will experience difficulties and even lose in carrying out trading activities. The support point is the point which is believed to be the lowest point of an asset in a certain period. While the resistance point is the point that is believed to be the highest point of an asset in a certain period. In simple terms, support and resistance are likened to the two most discussed attributes in analysis where support is a level that has the potential to withstand price declines. Meanwhile, resistance is a level area that has the potential to hold back price increases. These levels are used to determine whether the price will continue or reverse. Basically, SNR aims to find out the right area when taking a buy or sell position and determine the target price movement. The support area is generally an area used as a reference f
Read more