Just because brokers allow you to open an account with only 25 USD doesn't mean you should. That is, unless you want to fail.
Ignoring Leverage: Why Most New Forex Traders Fail
What exactly is leverage and how does it work? Make sure you get this concept down pat so you don’t get any surprises!
Leverage and Margin Explained
What is the difference between leverage and margin? You don’t want to confuse those two terms and wreck your account.
Margin Call Explained
Everyone fears the dreaded margin call. What does this mean and what happens after you get it? Read on to find out!
Be Careful Trading On Margin
Make sure you fully understand how margin and leverage work in order to avoid getting a margin call. Here’s how you can do that:
See How Leverage Can Quickly Wipe Out Your Account
Check out this concrete example of a trader whose account got blown by the negative effects of leverage.
Low Leverage Allows New Forex Traders To Survive
The more leverage you use, the less breathing room you have for the market to move before you get a margin call. Here’s an example to illustrate.
How Leverage Affects Transaction Costs
Not only does leverage amplify your losses, it also amplifies your transaction costs as a percentage of your account. Check out this illustration.
Never Underestimate Leverage
Understand when to take advantage of leverage and when it can damage your account. Here are some things to take note of.
