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Forex question What is the leverage and why is it necessary?
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Question by: Henry - 04 Nov 2016, 08:24:41
What is the leverage and why is it necessary?
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Answer by: Jeremy - 04 Nov 2016, 08:35:35

Leverage – the ratio between the volume of positions and a guarantee for its opening. The higher the leverage, the less amount of money is needed for the transaction. The leverage allows you to trade much more money compared to the amount that you have on the account. Thus, the leverage of 1:100 means that to open a trading order customer must have 100 times less sum than the value of the contract.

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