Understanding Leverage in Forex Trading and the Dangers of Margin Trading

Leverage and the Dangers of Margin Trading. Zoe Fiddes, Head of Sales at ORE Tech comments. Leverage can vary hugely from one broker to another; the standard leverage in the forex market is 1:200 leverage. So if you're trading a $100,000 or 1 lot in MT4 terminology, then you would have to put in $500 of your own money. So in recent years we've seen brokers offering leverage of up to 1:500 and this is also demanded by clients but more leverage means more risk

Comments

1. Thanks..
2. Thank you for your clear explanation of how margin trading works. Very helpful :)
3. Forgive me for sounding like a idiot. So if I have £100 deposited and leverage at 100-1which gives me £10000 to trade with. If I lose all of the £10000 am I liable to pay back the £9900 hypothetically.
4. Beautiful voice and person , you need to hunch less, bad for health, get you back straight or maybe a better chair.