What is the advantage to trading forex?
October 1, 2008
The advantage of trading forex is simply: leverage.
The ratio of investment to it’s actual value is called the “leverage”.
If you used $1,000 to purchase a Forex contract having a $100,000 value, you are leveraging at a 1:100 ratio.
The $1,000 all you invest and risk at one time, but the gains you can make may be many times greater.
This is the beauty of forex investing in that you can make a lot of money with a small investment if done properly.
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