UNDERSTANDING MARGIN AND LEVERAGE - FOREX BASICS | Forex
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UNDERSTANDING MARGIN AND LEVERAGE - FOREX BASICS This video attempts to explain how margin and leverage work. Check out the entire free forex course (in process): http://www.FreeForexAcademy.com The Free Forex Academy is a partner of InformedTrades.com, a community of traders dedicated to learning. At the Free Forex Academy, we are in the beginning stages of creating an entire comprehensive series of courses on forex trading. This section is on economic reports, and the information in it applies to all markets. Learn Forex for free! Take the entirely free course at the link above or on youtube. Practice live forex trading with real time charts and live price feeds for free while you learn. Get a totally free virtual trading account here- http://clk.atdmt.com/FXM/go/166058821/direct/01/ Music: Danse Macabre - Low Strings Finale (Theme) Exotic Battle Impact Andante Kevin MacLeod incompetech.com
Comments
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Nice video. I use www.fxglory.com to trade with the highest leverage; 1:3000. I like high leverages.
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Yes it does. From the cost of storing the actual Gold. It's called "Cost of Carry". So if you increase your leverage up, then the interest is going to increae. If you decrease your leverage down, then the interest is going to decrease.
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For that eventuality to come to pass? We'd be in something ... wow, similar to 2008 type scenario ... but I'd be safe, even though margined and leveraged. That's like ... MAD MAX economic problems. But I'd be ok. But if it DIDNT fall apart, then I'd be doing more than great (which is what occured) Anything over 10 to 1 leverage is just insane as a type of contextual understanding. The trader is either nuts, spinning his account to nowhere, or a pro that can do great math in their head
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LOL Indeed .... Just remember, it has it's benefits as well. Like any good tool (I'm swing a tool at you to the screen heheh) ... you just have to be careful with it. For instance, with Forex, do I use Margin? Yeup. Do I leverage? Yeup. I just handle it carefully. For example, I went long AUD/JPY in November. I calculated out before I ever got into the trade, how much I could safely be in the trade without ever being in Margin trouble even if AUD/JPY sank to _ 65 _
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Classic clip from SouthPark relating to the dangers of margin: "...and its gone!"