Does the broker profit by giving you leverage

Depends which “brokers” we are talking about. Brokers offering access to exchange always charge overnight swaps :slight_smile:
Bucketshops also charge swaps but only to look as real broker.

Leverage that offered some broker now they like as competing to offer best campaign with high leverage, but some trader having opinion is high leverage is harmful many trader and broker offer this leverage because they want making trader getting loss quickly, on one side will useful and boosting profit but on other side will making quick loss also

Hey Abdul, As a Muslim I know why you’re asking these questions because In Islamic view Any kind of Profit taken from Credit or Loan becomes Interest. And Taking or Giving Interest is Totally haram. But I would like to Remind you that Gambling is also Haram and Forex Trading is fully Gambling because No one is buying or selling any asset in this market This is just a Speculation game as CFD.

For reference or Proof, Read this (If I’m wrong then Reply me anyone because I also want to know the reality) :- https:/ /www .investopedia. com/article s/forex /06/seve nfxfaqs. asp ----- Copy it and paste it without space…

I was just wondering about this very question as well. What I understand is compounding is the obvious way to grow your account, business, investment etc much exponentially. As you grow your capital inside your account, you can risk far less than the capital you first started and still make more profit.
My question is with more capital inside your account and if your trading with very small lot sizes (micro-lot). Would you exponentially save money as well from trades off brokerage commissions/rolls because your mostly trading on your margin (say for ex: starting on $200 and growing it into like $25,000 in our own margin) assuming if it were an excellent trader…which I’m not there yet lol? Which means…

Bigger capital = better (profit:risk) ratio and protection from stop hunting without having to over leverage for decent take profit

I’m sure you see on many brokers websites they usually 70% of people have lost money in the past month.

Now imagine being the counter party to a trader that lost 70% of the time??

What an indicator that would be :rofl: