Tuesday, August 11, 2009

Leverage & Margin

Leverage & Margin

Leverage trading, or trading on margin, means you aren't required to put up the full value of the position.

Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.

FOREX.com: No debit balances, no margin calls

At FOREX.com, your risk is only limited to funds on deposit. Our margin policy eliminates concerns about debit balances by guaranteeing that you will never owe more than you have in your account.

More leverage means more opportunity - and more risk

It's crucial to remember: increasing leverage increases risk. To limit downside risk, monitor your account regularly and use stop-loss orders on every open position.