what is leverage and what are its benefits.

Dear members, Forex trading aik asa business hai jis main trade krny say pehly ap ko buht si Baton ka khiyal rakhna hota hai. Is jab ap broker select krty hain, tu wo broker select krna chaiy jo maximum leverage facility day. Aj main apni post me, main ap say leverage kiya hai, aur is k advantage aur disadvantages, say related knowledge share krna chata hoon.

What is Leverage:

Dear members, Forex trading market main, Leverage aik credit facility hoti hai, jo ap k broker, ap ko daita hai. Is facility ko use kr k ap apny account balance sa zyda trading kar sakhty Hain.

Advantage of Leverage:

Dear members, Forex trading main leverage ka sab say bara benefit yah hota hai, keh ap apny deposit say zayda trading kr sakty hain. Ap jitni zayda leverage facility lyty hain, to ap kam balance k sath, maximum lot ka istemal kr sakty hain. Forex trading me, Leverage aik credit hota hai, jo ap ka broker aapko provided karta hai.

Disadvantages of leverage:

Dear members, Forex trading market main ager ap zayda leverage istemal krty hain, tu is mein faiday k sath sath kuch nuksan bi hain. Jab aap leverage ko use krty howy bari lot lagwaty hain, tu is main aapko loss bhi zayda ho sakhta hai, aur ager loss zayda ho jata hai to, broker ki taraf say ap ko margin call ho jati hai.

Benefits of leverage to broker:

Dear members, Jab broker ap ko leverage facility daita hai, tu broker ko bi is say benefits hoty hain. Jab broker ap ko zayda leverage daita hai to ap bari lot use kr sakty hain aur zayda trading krty hain to broker ko zayda commission milta hai. Is tarah zayda leverage say broker aur trader, dono ko advantages hota hai.

Re: What is leverage and what are its benefits.

What is leverage in forex?

Leverage in forex is a way for traders to borrow capital to gain a larger exposure to the FX market. With a limited amount of capital, they can control a larger trade size. This could lead to bigger profits and losses as they are based on the full value of the position.
Trading with leverage in forex, which is also referred to as forex margin, means you can magnify profits if markets move in your favour; however you can also lose all of your capital should markets move against you. This is because profits and losses are based on the full value of the trade, and not just the deposit amount.
Forex trading comes with some of the lowest margin rates in the financial markets. The leverage difference between forex and stocks, for example, is much higher. Stock market leverage starts at around 5:1, which makes trading within the share market slightly less prone to capital risk.








Leverage and margin in forex

Margin is the amount of money needed to open a leveraged trade. When trading forex on margin, you only need to pay a percentage of the full value of the position, which acts as a deposit. Margin requirements can differ between brokers, but start at around 3.3% for the most traded currency pairs, such as EUR/USD, USD/JPY and GBP/USD.




What does a margin call mean in forex?

Any deposits used to keep positions open are held by the broker and referred to as ‘used margin’. Any available funds to open further positions are referred to as ‘available equity’ and when expressed as a percentage, ‘margin level’.
A margin call occurs when your margin level has dropped below a pre-determined value, where you are at risk of your positions being liquidated. Margin calls should be avoided as they will lock in any of the trader’s losses, hence the margin level needs to be continuously monitored. Traders can also reduce the chance of margin calls by implementing risk management techniques