Leverage trading: Investing on steroids
Currency trading on margin means that you can buy and sell currencies for a greater value than what is available on your account.
Currency trading on margin can make you rich quick, but margin trading also entails significant increased risk.
advantage of trade on margin is that you can earn much more money, even if you do not invest more. The downside is an increased risk, which can weigh up the potential for increased earnings. So it is always within finance, small risk and little gevnist but high risk and potentially large gains.
You may wonder what trading on margin is and how it is possible. We will look at now.
What is margin trading?
An important concept in currency trading is "margin trading" or "trading on margin", meaning that you can buy and sell for much more than what you actually have coverage. It is possible if you allow the total amount in your currency account with Forex broker may stand as security for investment.
There are a number of services that offer margin trading, but not all are equally good terms.
