Forex Signals

The biggest advantage of trading on the Forex market is the so called “Leverage”. It allows to trade with amounts much greater than the actual money you have. For example you can use only $100 to buy a Forex contract for $10 000. It means that you can profit from a contract for $ 10 000 but the only sum you can actually loose is the $100. Sounds great, doesn’t it!

The leverage can seriously vary but the most common is at a 1:100 ratio. Obviously, the bigger the leverage ratio is the best. It depends on the trading platform and the currency pair but you should always try to use the biggest possible ratio.

And don’t forget the risk: you will never loose $10 000. The only money you can jeopardize is the actual $100.

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