SuperForex-Lecture-5---Margin-Trading-on-the-Forex-Market.

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1. What is a margin?
2. What does it mean to have a leverage of 1:50?

What makes Forex attractive not only for heavy speculators but for private investors as well?

It is the mechanism of margin trading.

Margin trading is used for providing access to the market for clients who administer small funds.

The standard lot in SuperForex is 10 000 USD, which you can trade with a minimal deposit of 1 USD.

The underlying principle of margin trading is that for the deal execution it is necessary to have just a small percentage of the total contract sum.

To buy or sell a currency a client should pay a bank or a brokerage organization a guaranteed deposit.

After this, leverage is provided to the trader (leverage – the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.) This borrowed money is used for the purchase of currency, shares or other assets.

With the help of leverage an investor gets the opportunity to execute deals with a volume that exceeds the initial investment 50-100 times.

Read more of SuperForex’s Online Lecture Margin Trading on the Forex Market here.

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