I am a new forex trader and I need to know how much I have to put in my account so I can get 100k in forex account with leverage and each broker made this possible?
Thank you
Simply put, leverage gives you the ability to trade beyond your account funds. With leverage, you can double your trading in a certain financial instrument without having to pay all the required funds. This means that you borrow a certain amount of money needed for the investment. So when you trade with leverage, all you pay is part of your position value.
A CFD is a form of leveraged trading. As the amount required to open and maintain a position is called “margin”, leveraged trading is known as “margin trading”. The term “leverage” is often used to denote that a small fluctuation in the price of a CFD can be magnified into a large change in profit and loss, with the degree of profit and loss depending on the degree of leverage used.
For example, a $1,000 balance with a 1:50 leverage ratio has a trading ability of $50,000, allowing traders to purchase financial products worth up to $50,000.
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Leverage means be careful! The answer above is correct.
If you don’t know how to calculate this, you shouldn’t be trading with the account leverage that will be necessary to get to this trading “power”.
Go to the School here, read up on that, and get more realistic about your account/trade size and use of leverage I suggest no leverage actually, since it appears you’re just starting out. I find it makes most sense that you demo trade what you’ll actually have as a real account, not some fantasy 100,000 account.
Leverage is nothing else just Borrowed capital to increase potential returns.
Leverage ratio varies from broker to broker. For example, if a broker offered 1:1000 leverage, it means you have to deposit 100 USD for show 100K USD in forex trading account.
If you are not careful with your use of leverage, you will lose all your money. I’ll suggest you have half of that money ($50k), then use a leverage of 1:2, or $5k and use a leverage of !;200 (highly risky). Learn how to works, the advantages, and how it can hurt you as well.
leverage contains huge risk from all financial tool in Forex trading. newcomers should use any kind of leverage ratio in demo account to see the performance how it works.
mostly traders especially the newcomers always like to consider high leverage as high risk . what is think guys , its true or not ?