Saturday, March 17, 2007
When trading forex what is the difference in cutting leverage in half and cutting order size in half? -
Is there a difference between the two? Profit/loss will be cut by the same amount either way, correct? Cutting leverage means that you will be wielding less power with every dollar you invest. If you invest $10,000 at 100-to-1 leverage, you are essentially controlling $1,000,000 worth of assets. At 50-to-1 leverage, your $10,000 is only controlling $500,000 worth of assets. Both ways, the most you can lose is your initial $10,000. Cutting order size means you are investing less at a time. Say you buy one $500 lot instead of 2 $1,000 lots. That s my understanding, anyway. You are better off cutting lot size than leverage, I think. First of all you should understand what is the leverage and order means. It s 2 different things. leverage: if your leverage is 1:100, that s mean you can trade 100 000 if you have 100 in hand order: the actual money involved is depends on your leverage and money in account. Free Advertise ,Forex investment ,Free Forex Practice account too . Earn Money in Forex Trading , Best of all Forex investment only 1 pip ( lower spreads ) Account Sizes: Mini Accounts: $250 - $5,000 Contract Sizes: Mini Accounts: 1k (micro), 10k (mini), 100k (standard) Free Practice Account too. Swap Schedule: Mini Accounts are swap-free. Leverage/Margin: Up to 500:1 on Mini Accounts Interest on Unused Margin: 2% annually. Trailing stops are designed to lock in profit levels. Click Here To Join http://dispatcher.fxclearing.ca/?form=dl... Click Here For More Information http://forex3333.atwebpages.com/index.ht... http://forex3333.tripod.com/index.htm
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