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Forex: What is leverage 1 100?

By
2019-12-31 13:24:14


In this guide we will talk about Forex and therefore deal with the 1 100 leverage.

The financial leverage is one of the most important benefits of Forex and the market, this will depend on getting to win, it is possible that this is entangled, this time our guide has the explanation of the leverage 1 100, to understand it we recommend that you pay attention below.

What is leverage 1 100 in Forex?


We have to talk about a virtual credit option, which through the broker can trade in the market for your money, if for example we have 100 euros in an account and use the leverage 1 100, we would have as 100,000 euros, 1000 x 100, the meaning of this is that when a currency rises 2 percent, the gain will be 2000 euros, with only having started with 1000 euros, losing would be the 1000 euros only, taking this process as the use of external capital per unit of own invested capital.

This is the only option for small investors to participate in the market, since this was thought only for banks and financial institutions, for Forex is a very necessary feature, not only for the capital to participate, even by the fluctuation of currencies and its average per day of 1 percent, we have that without the leverage 1 100, it is not possible the capital of Forex, which means that it is designed so that the participation of investors is according to their capabilities in the market.

Leverage

400:1

200:1

100:1

50:1

25:1

percent open operation



0.25 percent

0.50 percent

1 percent

2 percent

4 percent

$ to open standard batch operation

$250

$500

$1000

$2000

$4000

$ to open mini-batch operation

$25

$50

$100

$200

$400

The initial deposit will be a guarantee to make the leverage in the account, thus avoiding reaching the negative balance in the account, without losing more than it was placed, the negative part of this, in minutes, even in a second you can get to lose the capital, it is bad to lose 1000 euros in seconds.

The market trend will be the safe route to make money, if the currency we use rises in value, it is normal to think that this is the right time to invest up to leverage 1:400, when it looks safe, being the rise you can not even rule out the existence of possible peaks of decline so you can go, until it goes up again, linear are not always trends, the best recommendation is never to use a high level of leverage if we get to invest small amounts of money, it will be sure to lose, being a fall in an upward trend is safe, you will lose everything if we use the leverage 1:400, so the indicated one will be the leverage 1:100, which will allow us to go little by little and more than in Forex we can daily make the amount of operations that we want.

End of the discussion of Forex and the guide, being the central theme specifically of the leverage 1 100, we hope that the content presented here will be very useful and will be until a new opportunity.  












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