(Read the first part on Understanding Leverage here) As you know, it’s not the maximum leverage, but the actual leverage that harms our trading account. However, the maximum leverage does play an important role in our trading, and must not be ignored. To understand its (potentially harmful) effects, we’ll need to take a look at …
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Without leverage, currency trading would be practically pointless for most retail traders. But while it is one of the most important distinguishing characteristics of retail Forex trading, I find that many retail traders are still in the dark about how leverage actually works. So what is Leverage, really? To understand leverage, we’ll first have to …
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