Account Types

Leverage in Forex and other Financial Instruments
Published on Feb 2, 2021

image

What is Leverage?

The forex market can be attractive to many investors because of several reasons but the main is leverage. Generally, leverage means borrowing capital as a fund source when investing to expand assets by amplifying return on investment thus carrying more risk. It is the amplification of the money deposited in the traders’ accounts. It gives them the ability to trade big positions by using small amounts of money.

Investors like the idea of borrowing capital to enhance profit, which is not available in other markets. These borrowed funds are not an amount that has to be paid after a certain time with interests. However, swap charges may be applied for holding the position overnight.

Share this article

Read More

Microsoft Overtakes Apple as Most Valued Company
Microsoft Overtakes Apple as Most Valued Company
How Close Are We To A Recession?
Several articles have been popping up recently showing that there is a recession coming up; in some cases, they refer to a recession worse than the financial crisis in 2007-2008. How true is this?
Credit Suisse Acquisition: Pros, Cons, and Impact.
This article will investigate deeper the potential benefits and drawbacks of the acquisition and examine its impact on Middle Eastern shareholders of Credit Suisse, who have suffered significant losses due to the bank's recent struggles
Why Should Trading Be in Your New Year’s Resolution?
New year's resolutions are mainly directed towards improving the quality of your life, which is usually achieved by better health and wealth. Read more in this blog about how to get closer to your dream lifestyle through trading.
How Do Central Banks Combat Inflation?
Have you ever wondered why central banks seem extremely concerned about inflation? Why is it so important to keep it in check and how do they do so? In this article, we will tap into how central banks combat inflation and their go-to tools for the job.