7 Reasons Why Forex Is a Superior Trading Arena for Individuals

Advertisements

2. Leverage

Leverage is the use of a technique to impact the directional trend of a mass that would otherwise, if not impossible, be much more difficult to control. The inter-bank currency exchange was previously accessible only to master traders with a $100 million account. With the recent enormous international growth, the home computer is now open to this market. The same leverage guarantees which international banks have had for years are now available to individual traders. It is possible to use a very small amount of money to handle a very big foreign currency deal. There is up to 200:1 leverage available and, in some cases, higher. This implies that $1000 can be used to keep another currency worth $200,000, with a large account.

Advertisements