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Showing posts with label account. Show all posts
Showing posts with label account. Show all posts

Thursday, December 24, 2009

The World Of Forex News Trading

ForexGen Leverage

Leverage, financed with credit, such as that purchased on a margin account is very common in Forex.

A margined account is a leverage able account in which foreign can be purchased for a combination of cash or collateral depending what your brokers will accept.

The loan (leverage) in the margined account is collateralized by your initial margin (deposit).
If the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position.