What is Leverage, Margin and Risk in Currency Trading?



http://theforextradingcoach.com - Understanding Leverage, Margin and Risk In Forex Trading In this video: 00:27 How leverage, margin and risk affect Forex traders 03:48 Different scenarios regarding pips 05:32 A really good month of October with +8.5% return

Comments

  1. great video buddy
  2. Leverage is very important for profitable forex trading. But it is quite difficult to understand. This is very powerful financial tool in trading. Basically it is expressed by the ratio and the base of its margin. It varies broker to broker. If you are able to maintain minimum 2% margin and if your broker allows you will get high volume of leverage. My broker ECNCAPITAL helps me to get high volume of leverage.
  3. This is a good video and the idea can be transferable to trading stocks and options as well. Having the risk to reward be equal across all trades and not ever get into a situation where you run the risk of not being able to cover all your open positions.
  4. Hey bro are you around South Africa?
  5. with 1:100 leverage on 100 $ which is 10,000
    and my lot size is 0.01 then
    Q.: how much #PIPS i got?
    anyone guide me
  6. I dont get it, why on earth most institution gurus like to sell putting STOPs on their trades. You already have this Margin Call mechanism to protect you from getting wipeout completely. Putting STOPs on a trade with 20-30 pips away most likely you will be stopout 90% of the time in forex, move your stops away more then that the stop become meaningless. To me stops are sitting ducks, and are asking for market makers to sweeps it. Its called "Market Sweep", just to hunt Stops placed on major Support, and Resistent levels.
  7. Hi Andrew, I am getting a lot of profit with the mt4 simulation, I mean 10% of my balance each day (5 hours a day), is there a big difference with the reallity? (I am not talking about psychology)
  8. So....what should a new trader who is trading with £1000  have their leverage set at?  So what happens when one loses?  What leverage should you use when starting in Forex  100:1 , or 50:1 or 1:1  ??    If we set it at 1:1 can you still make some money?
     Nobody seems to mention this ... ·
  9. Hi Andrew, What platform do you use to trade forex in Australia?


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Duration: 6m 41s

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