iFOREX Education - What is Leveraged Trading?

To learn more about leveraged trading go to http://bit.ly/1R24lMh Capital is at risk The online trading market offers a great benefit called Leverage. Leverage provides the power to make significantly bigger trades, while investing a smaller amount. A leverage of 400:1 for example, means you can purchase up to 400 times more for the same amount you want to invest. Let’s see how it works! Adam is looking to invest in gold. He wishes to buy gold now and sell it for a profit later, when its prices rise. If Adam invests $500, and the price of gold rises in 10% - He will make a profit of $50. By using the available leverage of 400:1 to maximize the opportunity, Adam can turn his $500 into a buying power of $200,000 – making a $20,000 profit from the same 10% price change!

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