The broker gives your investment a bit of leverage and makes it bigger than it is
Posted: Sun Jan 19, 2025 3:52 am
In our everyday lives, leverage is something that helps you lift something big with the help of a lever. Well, when it comes to Forex, it’s pretty much the same. But what is this lever when it comes to Forex? On Forex, we operate with money - so, basically, your leverage would only be “more money”. In other words, leverage is a certain amount of money borrowed to a trader by a broker to increase the return.
The broker gives your investment a bit of leverage and makes it bigger than it is. Let’s take an example. You have $1,000 and use the leverage of 100:1. It means that your investment multiplies by 100 and is now $100,000! Imagine your myanmar business email list investment value rises to $101,000. Since you have got the leverage of 100:1, you get 100% of your $1,000 as profit, and it’s fantastic.
Is it always this perfect? Let’s take the opposite scenario and see what happens if you lose $1,000. If you use leverage, you lose 100% of your investment just like that. Leverage works both ways - in your favour and against you. Trading using leverage is what actually makes the market exciting and brings you bigger amounts. Without leverage, you might wait more than a year till your profit is 10%, but for those who take advantage of leverages, it’s no surprise to get 10% within just a day.
The broker gives your investment a bit of leverage and makes it bigger than it is. Let’s take an example. You have $1,000 and use the leverage of 100:1. It means that your investment multiplies by 100 and is now $100,000! Imagine your myanmar business email list investment value rises to $101,000. Since you have got the leverage of 100:1, you get 100% of your $1,000 as profit, and it’s fantastic.
Is it always this perfect? Let’s take the opposite scenario and see what happens if you lose $1,000. If you use leverage, you lose 100% of your investment just like that. Leverage works both ways - in your favour and against you. Trading using leverage is what actually makes the market exciting and brings you bigger amounts. Without leverage, you might wait more than a year till your profit is 10%, but for those who take advantage of leverages, it’s no surprise to get 10% within just a day.