[h = 3] Leveraging - What is it? [/ h]
[h = 3] Leveraging is, in simple terms, the ability to invest larger chips than we really own.[/ h] This leveraged investment practice multiplies and Gains if the market moves in favor of us but also DAMAGES if the market moves against us.
LET'S LOOK AT 3 EXPLANATORY EXAMPLES OF LEVELING IN THE EURO DOLLAR EXCHANGE RATE AND EUR 3
1 TO 100 SENSITIVE COEFFICIENT
IN THE ABOVE EXAMPLES HAVING 100 $ OPENING POSITION FOR 10.000 $ THROUGH THE 1 / 100 SLAUGHTER.
[h = 3] THE LAST WEEK OF EQUALITY IS NAMED pip (every change by 1 pip increases or decreases our capital as it is obvious).[/ h] [h = 3] FOR OUR 3 EXAMPLES THE VALUE OF EACH PIP was 7,5 $[/ h] (the above examples do not include commissions and transaction spreads.)
[h = 3] EXPLANATIONS[/ h]
How do leveraged transactions work?
[h = 3] Leverage trading is based on defining a ratio for every dollar in your account. The money you use in the transaction is the money you put at risk. This money is called "margin". For example: if you invest $ 100 and use a 1: 200 leverage ratio, then you have $ 200 for your trade for every $ 1 of your investment (margin). If you start trading with $ 100, you can get up to $ 20.000 (200x100).[/ h]
Why are there leveraged transactions?
[h = 3] In the Forex market, using leverage allows you to maximize your profits. Leverage is necessary because forex transactions involve very small price differences. Indeed, the difference may consist of a fraction of a cent. With such small amounts, it may take a long time to secure significant profits, as well as a large initial investment. Using leverage allows you to make your investment with a lower initial investment much faster. Forex transactions take place very quickly, and for this reason you should be very careful when using leverage. The higher the leverage ratio, the greater your chances of losing your investment when the currency pair is in the opposite direction to your prediction. We advise you not to compromise more money than you are willing to lose.[/ h]
What is the margin?
[h = 3] The "margin" consists of the amount you declare in the Forex deal you open, ie the investment you put at risk. Online brokers or brokers must ensure that investors are able to pay in the event of a loss in investor transactions. Investors deposit money into an account, which can be used to cover any potential losses. This money is also called a "minimum guarantee". Through margins, investors have the opportunity to invest in markets where the minimum allowed transaction is already too high for them. Margin trading can maximize profits as well as potential losses.[/ h]
Profit and loss ratios in leveraged transactions
[h = 3] As mentioned above, the margin is your investment. Therefore, you invest a margin of $ 1.000 for a $ 100.000 agreement. Your ratio is 1: 100. If the exchange rate fluctuates, for example, in the order of 0,5%, your margins will change by 50%! Since your agreement corresponds 100 times to your margin value, changing 0,5% becomes 100 times greater, ie 50%.[/ h]
Can you limit your risk index?
[h = 3] Your risk index can be reduced by using Stop-Loss values. These prices are set by you, the investor. You select a Damage Minimization value that corresponds to the lowest point you wish to reach. In case the market reaches this price, your deal will be terminated automatically and you will not have a bigger loss. Because you set this price, you can control your investment. That is, you can be sure that you will not lose more money than you are willing to lose. In the same way, you have the option to set a "Take-Profit" price. This value allows you to automatically terminate your deal when the price you set is displayed. Profit Making makes it easier for you to control your trades, because using this tool does not require constant monitoring of your position on your part. As long as your deal remains open, you can, at any time, change the prices you have set. It is important to know that we can not guarantee 100% for the definition of these prices, because market conditions may suddenly affect transactions. For example, the market can change unpredictably and quickly, and those involved in Forex trading may not be able to perform the specified values because their trading environment is suddenly out of their control. [/ h]
[h = 1] BOTTOM ADVANTAGES[/ h] [h = 3] 1) Operates proliferating in the growth of equity when our investment position ???? in the market is right
2) It gives us the ability to invest more from our own capital when there are opportunities in the marketplace? or b ???? sales ???? (implies the investor's experience)
3) Allows us to be able to compensate for risk ???? in an already b ???? open position ???? , or in a currency risk (for commercial enterprises)
4) Extremely fast (for experienced investors) when increasing its factor, e.g. from 100 to 200 produces winnings at high speeds (especially at strong tense)
5) gives the opportunity to b-charismatic middlemen and small investors to win profits that would not otherwise have been possible without the leverage of b.
6) under proper use is an excellent financial investment tool since it not only multiplies profits but can also offset the risk.
[/ h] [h = 1] LEAVING OFFENSES[/ h] [h = 3] 1) Increases exponentially the risk when we are at the wrong sidebar ???? of the market, when our investment position is contrary to the pricing
2)There is a risk of total loss of capital, especially in its useless value!
3) Creates huge b ???? psychological pressure ???? in the majority of investors, increasing stress and driving them to b ???? hurried ???? decisions under the influence of b ???????????? in each bristle ???? movement against the position they have undertaken!
4) Blows on instantaneous dysfunctions of joy and sadness b ????????????????? the investor's woes.
5) Accelerates within a little time the phenomenon of b ???? immersion ???? capital when the market moves to our position, and the recovery of losses requires several higher earnings! after losses of 50% to the capital, 100% earnings are required to return without damaging to our initial fund.
6) Is it a b ?????????? ???? in the hands of inexperienced investors who from which side and kept simply will b ?????????????????????
The way of using this financial tool depends on the experience knowing the talent and the b ???? cool ???? of each investor, can be done under proper risk management a b ???? super-complicated? profits, but in the opposite case the b ????????? destructive.
Survival in the jungle of leeway b ???? is a primary goal and long-term profits multi-faceted knowledge talent experience correct psychology, full understanding of the concept of LEVERAGE is a step of great importance for our involvement in the world of costume!
[/ h] [h = 3]
[/ h] [h = 3] Important Notice[/ h]
Always buy or sell orders at exchange rates or CDFs are given with a predetermined stop-loss "LOSS TERMINATION ORDER" so that if the market moves against us our total capital is not endangered.
[h = 3] Leveraging is, in simple terms, the ability to invest larger chips than we really own.[/ h] This leveraged investment practice multiplies and Gains if the market moves in favor of us but also DAMAGES if the market moves against us.
LET'S LOOK AT 3 EXPLANATORY EXAMPLES OF LEVELING IN THE EURO DOLLAR EXCHANGE RATE AND EUR 3
1 TO 100 SENSITIVE COEFFICIENT
 |
| [h = 2] EXAMPLE OF PROFITS THROUGH 1 / 100[/ h] |
 |
| [h = 2] EXAMPLE OF DAMAGES THROUGH 1 / 100 LAMINATION[/ h] |
 |
| [h = 2] EXAMPLE OF TOTAL LOSS OF CAPITAL[/ h] [h = 2] "MARGIN CALL" (POSITION MARGIN COVERAGE)[/ h] |
[h = 3] THE LAST WEEK OF EQUALITY IS NAMED pip (every change by 1 pip increases or decreases our capital as it is obvious).[/ h] [h = 3] FOR OUR 3 EXAMPLES THE VALUE OF EACH PIP was 7,5 $[/ h] (the above examples do not include commissions and transaction spreads.)
[h = 3] EXPLANATIONS[/ h]
How do leveraged transactions work?
[h = 3] Leverage trading is based on defining a ratio for every dollar in your account. The money you use in the transaction is the money you put at risk. This money is called "margin". For example: if you invest $ 100 and use a 1: 200 leverage ratio, then you have $ 200 for your trade for every $ 1 of your investment (margin). If you start trading with $ 100, you can get up to $ 20.000 (200x100).[/ h]
Why are there leveraged transactions?
[h = 3] In the Forex market, using leverage allows you to maximize your profits. Leverage is necessary because forex transactions involve very small price differences. Indeed, the difference may consist of a fraction of a cent. With such small amounts, it may take a long time to secure significant profits, as well as a large initial investment. Using leverage allows you to make your investment with a lower initial investment much faster. Forex transactions take place very quickly, and for this reason you should be very careful when using leverage. The higher the leverage ratio, the greater your chances of losing your investment when the currency pair is in the opposite direction to your prediction. We advise you not to compromise more money than you are willing to lose.[/ h]
What is the margin?
[h = 3] The "margin" consists of the amount you declare in the Forex deal you open, ie the investment you put at risk. Online brokers or brokers must ensure that investors are able to pay in the event of a loss in investor transactions. Investors deposit money into an account, which can be used to cover any potential losses. This money is also called a "minimum guarantee". Through margins, investors have the opportunity to invest in markets where the minimum allowed transaction is already too high for them. Margin trading can maximize profits as well as potential losses.[/ h]
Profit and loss ratios in leveraged transactions
[h = 3] As mentioned above, the margin is your investment. Therefore, you invest a margin of $ 1.000 for a $ 100.000 agreement. Your ratio is 1: 100. If the exchange rate fluctuates, for example, in the order of 0,5%, your margins will change by 50%! Since your agreement corresponds 100 times to your margin value, changing 0,5% becomes 100 times greater, ie 50%.[/ h]
Can you limit your risk index?
[h = 3] Your risk index can be reduced by using Stop-Loss values. These prices are set by you, the investor. You select a Damage Minimization value that corresponds to the lowest point you wish to reach. In case the market reaches this price, your deal will be terminated automatically and you will not have a bigger loss. Because you set this price, you can control your investment. That is, you can be sure that you will not lose more money than you are willing to lose. In the same way, you have the option to set a "Take-Profit" price. This value allows you to automatically terminate your deal when the price you set is displayed. Profit Making makes it easier for you to control your trades, because using this tool does not require constant monitoring of your position on your part. As long as your deal remains open, you can, at any time, change the prices you have set. It is important to know that we can not guarantee 100% for the definition of these prices, because market conditions may suddenly affect transactions. For example, the market can change unpredictably and quickly, and those involved in Forex trading may not be able to perform the specified values because their trading environment is suddenly out of their control. [/ h]
[h = 1] BOTTOM ADVANTAGES[/ h] [h = 3] 1) Operates proliferating in the growth of equity when our investment position ???? in the market is right
2) It gives us the ability to invest more from our own capital when there are opportunities in the marketplace? or b ???? sales ???? (implies the investor's experience)
3) Allows us to be able to compensate for risk ???? in an already b ???? open position ???? , or in a currency risk (for commercial enterprises)
4) Extremely fast (for experienced investors) when increasing its factor, e.g. from 100 to 200 produces winnings at high speeds (especially at strong tense)
5) gives the opportunity to b-charismatic middlemen and small investors to win profits that would not otherwise have been possible without the leverage of b.
6) under proper use is an excellent financial investment tool since it not only multiplies profits but can also offset the risk.
[/ h] [h = 1] LEAVING OFFENSES[/ h] [h = 3] 1) Increases exponentially the risk when we are at the wrong sidebar ???? of the market, when our investment position is contrary to the pricing
2)There is a risk of total loss of capital, especially in its useless value!
3) Creates huge b ???? psychological pressure ???? in the majority of investors, increasing stress and driving them to b ???? hurried ???? decisions under the influence of b ???????????? in each bristle ???? movement against the position they have undertaken!
4) Blows on instantaneous dysfunctions of joy and sadness b ????????????????? the investor's woes.
5) Accelerates within a little time the phenomenon of b ???? immersion ???? capital when the market moves to our position, and the recovery of losses requires several higher earnings! after losses of 50% to the capital, 100% earnings are required to return without damaging to our initial fund.
6) Is it a b ?????????? ???? in the hands of inexperienced investors who from which side and kept simply will b ?????????????????????
The way of using this financial tool depends on the experience knowing the talent and the b ???? cool ???? of each investor, can be done under proper risk management a b ???? super-complicated? profits, but in the opposite case the b ????????? destructive.
Survival in the jungle of leeway b ???? is a primary goal and long-term profits multi-faceted knowledge talent experience correct psychology, full understanding of the concept of LEVERAGE is a step of great importance for our involvement in the world of costume!
[/ h] [h = 3]
[/ h] [h = 3] Important Notice[/ h]
Always buy or sell orders at exchange rates or CDFs are given with a predetermined stop-loss "LOSS TERMINATION ORDER" so that if the market moves against us our total capital is not endangered.
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