So I think what leverage is, it's basically just multiplying your profits/losses. You don't own the 1,000,000, in the example, you still just own 10,000; but every pip you profit from or lose from, it's going to add/subtract from your margin as if you had 1,000,000. If you lose enough until you have no more of your margin, it's over, you can't go negative. In EUR USD for example, how would people make significant money by only capitalizing on changes so small? EUR USD barely changes + or -0.01 nowadays each day, if you used a leverage of 1:1, you would never make significant money. So leverage allows you to amplify/multiply your profits and losses to something like few dollars in the example of a small account. I don't know if I'm 100% correct.
If someone use 1:10 ratio of leverage and his own capital 1000 usd.for example,he buys a pair of any currency lot 0.10 Price of 0.10 lot is 10,000 his capital is 1000usd rest of money provides the broker as leverage option . At the end of the day,he has to pay interest on 9000 which he got from the broker as leverage or not .
Hello Usman Noor! Leverage is offered by brokers to maximize traders' buying power by giving them the ability to deposit a small amount of funds and trade larger volumes. A trader doesn't have to pay interest. Kindly contact our customer support at fxtm.co/start-chat-now to get full consultation.
What I do not understand is this: Leverage is not dangerous I believe coz in your video trading 1,000,000 Eur is basically 10lots, Am I right ? If that is the case, shouldnt the lot size be the concern here? I can have 1:100 when I have 10000EUR but I can enter a trade with 0.1lots=10000EUR with the margin of 100EUR at risk
Hi Bilegt Shurkhuu! To calculate Margin for Currency pair one shall use the following formula: Margin = Notional value / Leverage If you open 0.1 lots EUR/USD at 1:100 Leverage, your Margin will be: 10,000 EUR / 100 = 100 EUR.
Hello US ABSHIR! Leverage is offered by brokers to maximize traders' buying power by giving them the ability to deposit a small amount of funds and trade larger volumes. Leverage is expressed as a ratio form, so if it is 1:100 for example, a trader's buying power is magnified 100 times. Leverage provides opportunities for multiplied profits but at the same time one may have multiplied losses as well.
전문직 내지 업이없는 사람이 가지는 내적 상실은 안가져본사람은 모른다 이로 나는 어떤것도 이해하게 되었다! 사는 기본권에도 못들어가는 이런 패단은 다시는 없어야한다 그러나 사실은 하나님이 다주신것인데도 찾지못하고 다른쪽에서 헤맨것이다! 이것도 개인과 가문이 속은 것이다! 하나님은 그 잃어버린것을 보상해주시고 원하는만큼 회복시켜주시리라 믿는다!
So I think what leverage is, it's basically just multiplying your profits/losses. You don't own the 1,000,000, in the example, you still just own 10,000; but every pip you profit from or lose from, it's going to add/subtract from your margin as if you had 1,000,000. If you lose enough until you have no more of your margin, it's over, you can't go negative. In EUR USD for example, how would people make significant money by only capitalizing on changes so small? EUR USD barely changes + or -0.01 nowadays each day, if you used a leverage of 1:1, you would never make significant money. So leverage allows you to amplify/multiply your profits and losses to something like few dollars in the example of a small account. I don't know if I'm 100% correct.
Yea its true lol
Thanks FXTM.Explained it in just 60seconds.
If someone use 1:10 ratio of leverage and his own capital 1000 usd.for example,he buys a pair of any currency lot 0.10 Price of 0.10 lot is 10,000 his capital is 1000usd rest of money provides the broker as leverage option . At the end of the day,he has to pay interest on 9000 which he got from the broker as leverage or not .
Hello Usman Noor! Leverage is offered by brokers to maximize traders' buying power by giving them the ability to deposit a small amount of funds and trade larger volumes. A trader doesn't have to pay interest.
Kindly contact our customer support at fxtm.co/start-chat-now to get full consultation.
if i lost the trade do i eligible to pay back the losses?
Hello Iqmal Miz! If you have negative profit on your order, the margin and the amount of the negative profit is paid.
is there any interest on leverage
Hello. Specify your question please.
@@fxtmglobal what i mean is there any interset on lend money from the broker?
@@hassanb7980 nope not like a typical loan at all
What I do not understand is this: Leverage is not dangerous I believe coz in your video trading 1,000,000 Eur is basically 10lots, Am I right ? If that is the case, shouldnt the lot size be the concern here? I can have 1:100 when I have 10000EUR but I can enter a trade with 0.1lots=10000EUR with the margin of 100EUR at risk
Hi Bilegt Shurkhuu! To calculate Margin for Currency pair one shall use the following formula: Margin = Notional value / Leverage
If you open 0.1 lots EUR/USD at 1:100 Leverage, your Margin will be:
10,000 EUR / 100 = 100 EUR.
You said leverage is a loan , but usually the loan must be repaid and this so called leverage can't use as you want so what is your aim?
Hello US ABSHIR! Leverage is offered by brokers to maximize traders' buying power by giving them the ability to deposit a small amount of funds and trade larger volumes. Leverage is expressed as a ratio form, so if it is 1:100 for example, a trader's buying power is magnified 100 times. Leverage provides opportunities for multiplied profits but at the same time one may have multiplied losses as well.
전문직 내지 업이없는 사람이 가지는 내적 상실은 안가져본사람은 모른다 이로 나는 어떤것도 이해하게 되었다! 사는 기본권에도 못들어가는 이런 패단은 다시는 없어야한다 그러나 사실은 하나님이
다주신것인데도 찾지못하고 다른쪽에서 헤맨것이다! 이것도 개인과 가문이 속은 것이다! 하나님은 그 잃어버린것을 보상해주시고 원하는만큼 회복시켜주시리라 믿는다!