Hi. I came here because someone in a different forum told me this is a good one. I was reading about Forex, now i know how the people earn the money, but that tutorial speaks about �leverage�, some kind of security deposit for the transaction. Can someone explain me that, I would prefer if you can use an example. Is that concept really important? Thanks.
Hello
Leverage is way for traders to trade larger positions. Hmmm… still confusing I guess. 
For example.
A broker offers a leverage of 100:1
In order to trade $100, you only need $1 (i think this is what you mean by security deposit)
Is this important? Yes. Leverage greatly increases the risk of trading.
Hope that helps. If you are still confused you can try finding some answers in the babypips’ school section especially college #1 cause of death for forex traders
RickyThor
Like phams0 rightly said, Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, that money is usually borrowed from a broker. Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up - and control - a huge amount of money.
“For example, if you have $10,000 in your account, and you open a $100,000 position (which is equivalent to one standard lot), you will be trading with a 10 times leverage on your account (100,000/10,000). If you trade two standard lots, which is worth $200,000 in face value with $10,000 in your account, then your leverage on the account is 20 times (200,000/10,000).”
Imagine this: you’re sitting at the blackjack table and the dealer throws you an ace. You’d love to increase your bet, but you’re a little short on cash. Luckily, your friend offers to spot you $50 and says you can pay him back later. Tempting, isn’t it? :rolleyes:
If the cards are dealt right, you can win big and pay your buddy back his $50 with profits to spare. But what if you lose? Not only will you be down your original bet, but you’ll still owe your friend $50. Borrowing money at the casino is like gambling on steroids: the stakes are high and your potential for profit is dramatically increased. Conversely, your risk is also increased.
Investing on margin isn’t necessarily gambling. But you can draw some parallels between margin trading and the casino. Margin is a high-risk strategy that can yield a huge profit if executed correctly. The dark side of margin is that you can lose your shirt and any other assets you’re wearing.
One of the only things riskier than investing on margin is investing on margin without understanding what you’re doing.
You can read more in this website (School of Pipsology / What is leverage)
OVERLEVERAGING IS KILLER