 |
|
Understanding The Leverage
USD/JPY
Leverage: 100:1
Account
balance: $ 4,000
USD/JPY
Forex contract value: $100,000 per 100,000 BCU
Here is a
quick example of what a 100:1 leverage could do on a standard Forex
account utilizing a leverage of 100:1. Assume you
buy 2 lots of currency pair USD/JPY, that is $200,000 worth of JPY (1
lot = 100,000 BCU). In order to complete the transaction, based on a
margin of 100:1 or 1%, you need to commit a margin of $2,000. If market
moves against you 100 pips that is about $1,700 in loss. A greater
leverage will give a greater purchase power however it will also expose
you to a higher risk-over-invested-capital ratio.
|
|
|
Disclaimer:
Examples provided are intended for
educational purposed only and are not meant to be exhaustive on
the argument, neither substitute the risk disclosures and
additional risk disclosures you need to read and understand and
sign, before opening any trading account with us. Concepts
expressed on this page do not aim to decry futures and Forex
trading regardless of the leverage used, rather to create
awareness especially among less experienced traders, as there is
a great risk of loss in these financial instruments and only
risk capital should be employed.
|
|
|
|
|
|
As we understand that no
trader is alike, FastBrokersfx.com has the right trading product that
fits your needs. Whatever your trading need
For currency traders we offer mini and executive account, with the right
leverage and benefits, like 2 pips spreads on EUR/USD and USD/JPY. Money
managers, brokers and foreign consultants and Institutions can finally
gain true Interbank access through our professional division |
 |
|
Whatever your needs are, FastBrokers.com is there to assist you, whether
you are a rookie or an institutional you will always receive the level
of service you are looking for.
|
|
|
|
|
