Effective Ex Forex Leverage

Leverage in Forex is different from that in the stock market. You won’t risk your deposit when trading with maximum Forex leverage. Your total trade volume will be 0.02-lots. This means that if the price goes against you, the opposite side won’t destroy your deposit either. However, this type of leverage won’t produce much profit.

One popular type of leverage is 1:10. This type of leverage allows you to enter more trades with the same amount of money. It will also allow you to spread your risk. For example, if you have a $100 deposit and use a leverage of 1:10, you’ll only need $10 to open a thousand-unit position.

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