 |
|
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.
|
|
|
Please note:
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.
|
|
|
|
|
|
In the
recent years, the online trading has seen an exponential growth on all
financial instruments. As more investors join the Futures and Forex
trading community we urge them to understand the risks involved in
investing such financial instruments.
Before
investing in the futures and forex markets, investors should understand
how markets work, governing rules and mechanisms, as the trading of futures and forex is not suitable for
everyone, and investors should only use capital they can afford to lose.
|
 |
|
In the United States of America these markets are regulated and
supervised by the
Commodity Futures Trading Commission (CFTC) and by the
National Futures
Association (NFA). NFA publishes several investor guides aiming to
provide awareness to those individuals interested in investing in the
futures and forex market.
|
|
|
|
 |
SLA Agreement
Policy and
pre-set rules aiming to provide its customers with the highest level of
support.
[more] |
 |
Understanding the Risk
Learn what risks are involved in trading Foreign
Currencies and what are your limits
[more] |
 |
No
Hidden Fees
FastBrokersfx.com is committed to
provide its customers with a no hidden fees policy for services and
products offered. Find out what expenses you can and cannot expect from
us.[more] |
|
|
|
|
