Why Invest In Forex? • 12.24.07
“Leverage” is the Forex advantage
The ratio of investment to actual value is called “leverage”. Using a $1,000 to buy a forex contract with a $100,000 value is “leveraging” at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.
How does one profit in the Forex market?
Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the (more…)
