Purpose Of, Facts Higher Leverage



Purpose Of, Facts Higher Leverage

Traders tend to like bigger progresses as well as could choose a broker based what is more on such feature. Merchants must still know that while higher leverage could lead to higher profits, it also increases level of hazard. Additionally, traders have to take into consideration that there are brokers that offer fixed leverage levels, but some some others adapt the leverage accordant to the traded currency and could also have special policies for carrying a trade through the weekend. Sellers must also understand the margin call policy of the foreign exchange agent. Some companies follow the "FIFO" (First - in - First - out) method in closing trades whenever the margin demands aren't met by current equity.

Central bank

Foreign exchange

Base currency

Exchange rates

Exchange market