Investors use when trading in the Forex market is almost always a big financial leverage. This is integrated into the trading platform. The principle of the lever is applied in trade professional trading for some time: The trader must at opening a position in the Forex market is not inferior to the aggregate amount of the position by account balances, but only a fraction of it. Due to the virtually infinite liquidity of the Forex market can be very small fraction of this: According to brokers, investors must 0.25 to 2 percent by volume of the position of account balances abdecken.Der financial lever allows you to move with a reasonable use of large volumes.
For example: Does the investor in his forex broker to deposit 1 percent of the volume position as an asset he can with a bet of 100 euros, 10,000 euros move in the market. Thus already provides an account balance of € 1,000, the establishment of a professional day trading approach. The possibility of gain by the effect of the financial lever also immense. Opened the investor is a position in the market and sets it 100 euros one with a 100-fold leverage is already a price movement to the extent of only one per cent in the leveraged total position in a doubling of the use (1 percent of 10,000 is 100, which is being used in this example) to purchase.
It is at this point, however, emphasized that the leverage effect can work in both directions, and thus against the interests of the trader. A 100-fold leverage implies a total loss of equity when the market moves by one percent in the "wrong" direction. Over its use of the investor can lose but not usually because the system software of the trading platform of Forex Brokers a loss that exceeds the account balance, prevented. With the opening of sub-accounts, it is possible to also protect assets from losses in open positions.
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