Topic Forex Trading Education - Learn With the Best Currency Courses Quickly and Risk Free!
One aspect of leveraged forex trading is trading in up to a 400 to 1 purchase Levelator Pro power. What this means is that for every dollar that you actually put into the market, you are controlling 400 dollars worth of currencies. As you can imagine there can be huge advantages to using this kind of leverage. Of course as with any leveraging tool, it can and sometimes does bite both ways. Let me explain.
What 400 to 1 leverage allows you to do, as I said before, buy or control 400 times the money that you actually have in the market. The really power aspect of this feature is that if you currency pair goes your way only 1 penny, you profited 3 dollars, with only 1 dollar in the trade. Wow, that is an awesome return on your money to be sure. Now let's get to the downside though.
you see for every action there is an equal and opposite reaction, so to speak. So what if your currency pair doesn't go your, but goes against you by only one penny. Well, in a case like this you are down four dollars, and you only put one into the trade, ouch! Here is where you need to have enough money in your account to absorb these tendencies to dip below your break even threshold. To say the least trading currencies can be an amazing roller coaster ride of sorts because of this.
I have spent many hours at trading conferences talking to other trader, or rather trading war stories with them. One time we got to talking about our best or at least most exciting trades. It was fun to listen to many traders talking about making upwards of 40 thousand dollars in a matter of a few minutes. Truly, it is invigorating to hear these stories.