The Concept Of Leverage In Forex

One of the main attractions to trade forex is big leverage and allows currency traders to borrow money and use that money to to profit from the fluctuations in exchange rates between two currencies. The leverage usable in forex trading is one of the highest that traders can obtain. Leveraged trading means that you are not required to pay the full value of the trading position but only small part of it.

Because of the big leverage in foreign exchange, traders are able to make large investments without a huge amount of trading capital, whereas in other financial markets such as the stock market, investors would have to pay 50% of the full amount for each share they were investing in.

Forex provides much more leverage than stocks or futures, allowing positions to be leveraged up to 100:1 or even 200:1 depending on the forex broker and the size of the position taken. This means that if a currency trader wanted to buy a “lot” worth $100,000, with 100:1 leverage, the trader only has to put up $1,000 of his own money into his margin account! With leverage, you can achieve higher returns on a smaller market movement.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.