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Forex Trading What is leverage and why is it necessary?
avatar Mymelody
Question by: Samanthar - 21 Mar 2017, 07:44:30
What is leverage and why is it necessary?
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Answers (1)
avatar user 12136
Answer by: Joseph - 21 Mar 2017, 07:55:33

Leverage – the ratio between the volume of positions and a guarantee for its opening. The higher the leverage, the less amount of money is needed for the transaction. The leverage allows you to trade much more money compared to the amount that you have on the account. Thus, the leverage of 1:100 means that to open a trading order customer must have 100 times less sum than the value of the contract.

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