Leveraged buying and selling transactions, In addition to being profitable, it is also defined as risky. It is a fact that risks increase in the rate of profit. Investors must have a certain amount of experience in order to benefit from leverage. Using high leverage with the ambition to earn money means facing risky situations. For this reason, it is necessary to use leverage ratios rationally. You should know that the source of bad comments about the Forex market is leverage rates.
What is Forex? How does it work? How to Trade?
In the forex market where you want to make money by using your savings using available features you increase your profits. But if you don’t know how to use these features, you will increase your losses. Therefore, you should have detailed information about forex. You should benefit from free training provided by intermediary institutions. Also, demo accounts are the best tools for you to learn about the use of these features. For this reason, you should definitely use demo accounts, learn the features and increase your experience level.
What is the Leverage System in Forex?
As people’s willingness to invest increase, the advantages of markets increase. The reason for this is the supply and demand logic. The trading characteristics of the markets are explored in search of how to make investments more advantageous. Forex is one of the markets that were discovered later. Its discovery was made by changing the valuation method of currencies. 1973 After the year, exchange rates were left to meet supply and demand in the foreign exchange market together with competitive market conditions.
Located in the Forex investment market, this system increases the amount of your collateral you enter the market. Thus, investors of all sizes can perform their transactions on the investment vehicle they wish. Forex global market Because it contains many countries. The leverage system also varies in terms of rates in each country. The use of leverage in our country Capital Markets Board (CMB) determines.
If you are going to make transactions with domestic brokerage firms, leverage ratio 1:10 It was determined as. From this rate, which also differs on investment instruments the floor you can utilize is 10. So if you are entering the market with $ 100, you can perform your transactions with a maximum of $ 1000. As we said, different rate applications are available in each country and can go up to 400 times.
Determining the currencies in this way özgü also increased the forex market investments. Especially advantages of forex Seeing investors started to prefer this market for foreign exchange investments. In time, the inclusion of other investment instruments and the use of the advantages on them caused a serious increase in transaction volumes. The advantages of such investors are leverage system and bidirectional trading feature. Although neither of them resemble each other very much in terms of advantages, the leverage system offers great opportunities for small investors.
How to Use the Leverage System in Forex?
It is also very important to be able to use the leverage system, which is so important for investors. If you do not choose your leverage correctly, you may lose all the collateral you entered into the market. That’s why How to use leverage knowledge is important. In order to use the leverage ratio correctly, you should know forex and investment tools well. It is also important to set your goals correctly. If you know how to operate and make the requirements for your goals, the leverage system will no longer be a burden for you.
Let’s explain the logic of the leverage system with an example.. For example, you entered the market with $ 200 and you want to trade with a vehicle worth $ 2.90. When the price of the investment instrument you are trading with is $ 3.00, your earnings will be $ 6.9. (200 / 2.90 = 68.97; 68.97 * 3 = 206.90) If you had used the leverage ratio in your transaction, you would have been trading with 2000 dollars, not 200 dollars. Your earnings according to calculation $ 68.96 It would take place. As you can see, when you use the leverage ratio, you can earn higher earnings.
In a transaction using the leverage system, you can see that your loss rate is higher by using the above calculation. Therefore buying and selling It is also necessary to take care of your transactions, to conduct your research on your investment instruments, to use analysis methods and to be a strict follower. If you perform all the necessary conditions for your transactions, you can be successful in using the leverage ratio. In this case, forex and it is important that you interpret their analysis well.
In our country February 10, 2017 The leverage ratios, which were 1 to 100, were reduced to 1 to 10, following the new regulations made on date. The reason for this regulation is explained as the protection of small investors. It özgü been said that small investors undertake risks that cannot be undertaken under düzgüsel conditions, with leverage ratios, and as a result, large losses are encountered.
Inexperienced investors, because of the passion for making money Trading with high leverage rates caused huge losses. Although leverage ratios are an advantage of the forex market, they increase risks for inexperienced and uninformed investors. For this reason, leverage should not be used without a certain experience. We recommend you to use it especially after gaining experience on demo accounts for a while.
What Are The Other Advantages Of The Forex Market?
As a global market, forex özgü attractive trading features. Daily trading volume of more than 7 trillion dollars, The first striking features are that transactions are carried out on the web for 5 days 24 hours. It is also a great advantage that you can trade wherever and whenever you want. Its features such as free training and demo account are also among the best steps to raise the awareness of the investor.
By using the leverage system in the Forex market, you can make use of other advantageous options, allowing you to get higher profits in your investments in a short time. One of these is bidirectional transactions. Thanks to bidirectional transactions, you can profit from both the fall and the rise of investment instruments. This situation paves the way for short-term transactions, but they do not provide much return when not used with the leverage system. This is because of fluctuating prices at low pips in a short time is to come true.
Are Profitable Investments Made in the Forex Market?
In addition, order types are offered to you to limit the risks in forex. By having information about Forex order types, you can avoid the price risk of your investment instruments. Types of orders Another important reason for you to use is the market 5/24 processing is open. When you cannot follow your positions, the orders you give take over your duty. You direct your transactions with the orders you apply to the positions and you can make your transactions in forex even if you are not in the market.
