"If your capital is low, use the greater leverage, as 1: 1000 that while your capital is low, you can more business and generating profits by a significant percentage "
margin and leverage
leverage borrowed from the broker given to the operator, so that the funds owned trader has greater purchasing power. Leverage is written in a report, for example 1: 1, 1: 100, 1: 500, and so on. In other words, if your fund of 100 when using a leverage of $ 1. 100 then $ has a power 100 times $ 10,000 100
Due to the amount of forex trading transaction is measured in the Lot where 1 lot for $ 100,000 so when you want bertansaksi 1 lot, you do not have to provide money sebanya $ 100,000, but how many percent of it in compliance with the leverage used.
margin is a security deposit that is temporarily held by the dealer when you make a trade, and will soon be returned to your account after closing / Position liquid that you open
Suppose your account using the leverage of 1 :. 100, then when you want the transaction amount of $ 1,000, you simply provide only 1% of the $ 10 submission to the broker and guaranteed. By submitting a guarantee that now you have the right to use the money brokerage and conduct transactions amounted to $ 1000
Another example :. You have a $ 500 capital and your broker has a leverage of 1: 100, so if you want to buy for 1 mini lot ($ 10,000), the capital of your account will be taken by the $ 100 broker (1% x 10 000) and the balance of $ 400 left in your account are used to maintain the loss .And if one day you have to liquidate long positions as margin of $ 100 that will be returned to you account.
advantage with leverage is that with a small capital, you can transact large amounts of money. . While the potential benefits of large amounts of money is greater mentraksaksikan
The following is a comparison if you use leverage and without keverage:
knowing the leverage and margin is expected, you can see that in the forex business with minimal capital, you can transact large amounts of money, so you are also likely to generate profits in large amounts that exceed the benefits if the money you used for business
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