The advantage of trading with forex: leverage
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The main advantage of trading forex is it’s incredible potential for investing leverage.
Essentially, “leverage” is the ratio of investment to it’s actual value.
If you used $1,000 to buy a Forex contract with a $100,000 value, you are leveraging your money at a 1:100 ratio.
The $1,000 is all you risk at once, but you have the potential to make a whole lot more than that.
This is the amazing thing about investing in forex, because you can make a lot of money with a very small investment if you do it properly.
Posted in The Basics of Forex | 
Tags: forex leverage, how the forex market works, investing leverage, why trade forex