What Is Margin Trading?

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Forex trading through the use of leverage. This is one of the most efficient ways to trade, leverage means buying on margin trading in currencies, in order to increase the value of the rate of return, without having to increase the initial investment. The amount represented by multiple nominal amounts of the transaction is greater than the margin exchanges needed. The initial amount is represented by multiples, the nominal amount of the transaction is greater than the margin exchanges needed. For example, if the notional amount of the transaction is $ 100,000, and the required margin is $ 2,000, the trader can take 50 times leverage ($ 100,000 / $ 2,000).

Of course, as the potential for profit is increased the corresponding potential for losses increases alongside it, The use of a high leverage trade comes with it a high level of risk, because you may have the potential to lose the entire investment. You must realise that leveraged Forex trading comes with considerable risk and may not be suitable for everyone. If the market trend is against your perspective choices, your potential losses may exceed your original investment. We offer a range of trading tools to help you manage your trading risks.

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