Tuesday, November 24, 2009

Increased Leverage

Increased Leverage
The Forex market allows you to control $100,000 with as little as
$1,000. This means that you can make your money work harder for
you in the Forex market than it can anywhere else. Imagine. You
can keep all the profits from a $100,000 trade, and all you have to
do is provide 1 percent of the money.
To put this in perspective, imagine that you are a real estate
investor, and you see a $300,000 home that you believe is going to
increase in value. If you could use the same amount of leverage in
the real estate market as you can in the Forex market, you could
buy that house with only $3,000 down and a potentially interestfree
loan. That would be incredible. Any real estate investor in the
country would do anything to get that kind of a deal, and that is
exactly the opportunity you have in the Forex market.
Increased leverage is also the point that well-intentioned, but
misinformed people point to when they say that investing in the
Forex market is risky. Granted, this amount of leverage may seem
aggressive, but the Forex market gives you the perfect antidote for
the risks associated with increased leverage: guaranteed stops.

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