Trading With Leverage

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Trading with a leverage allows the trader to open positions that are greater than your own capital. For most Forex pairs, the maximum leverage that can be applied is 500:1, which means that for every $ 500 value in the position the trader must invest $ 1 from his account. This means that if the trader wants to buy 10,000 units of EURUSD for the price of 1.2356, you  will only have to pay $ 24.71 instead of $ 12,356, which is 0.20% of the price, or a ratio from 500: 1. It is important to remember that the profit and loss are determined by the position size, and the lever trade can enlarge both the profit and the loss.

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