Forex Leverage is defined as the use of borrowed capital, such as “margin” allowing the Forex trader to gain access to larger sums of capital. This can heighten profits and losses and should be used wisely.
Forex Trader A has $5000 USD:
If Forex Trader A has an account leverage of 10:1and they wish to use $1000 on one Forex trade as margin, they will have exposure of $10,000 in base currency ($1000) = 10 x $1000 = $10,000 (trade value).
Forex Trader B has $5000 USD:
If Forex Trader B has an account leverage of 100:1and they wish to use $1000 on one Forex trade as margin, they will have exposure of $100,000 in base currency ($1000) = 100 x $1000 = $100,000 (trade value).
Arramed’s standard Forex leverage starts at 100:1. The maximum Forex leverage Arramed may offer is up to 500:1. This is only for approved accounts and funds approved for leverage greater than 100:1 will be limited.
If you wish to get access to higher Forex leverage, please note this on the application or contact us. By submitting an increase in trade leverage request, you accept that this can result in high risk and severe or total account loss. Arramed is a non-advisory Forex broker and will not provide you with investment or personal trading advice. For such advice, please consult a registered financial advisor. For Forex market news and commentary, please see the Arramed News Centre.
Margin Forex is very high risk and leverage should be used wisely.
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