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How to Trade With Leverage in Forex

What is Leverage   Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage.  Leverage in Forex   Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to mov

Forex Top 4 Currency Pairs Trading Daily In The Forex Market

This article provides a brief overview of seven important currency pairs traded on the Forex market. These are the most popular pairings among traders and investors, and they have great liquidity and low spreads. EUR/USD (EURO vs Dollar) The Euro (EUR) is a single European currency that was introduced in 1999 to replace all national currencies in the European Union. Given its status, the EUR is a reflection of the state of the European Union's economy and is highly sensitive to European macroeconomic figures. The EUR/USD pair leads the Forex market in terms of daily trading volume, accounting for about 20% of total trading volume. The EUR/USD rate depicts the current exchange rate between the currencies of the EU and the United States. If the pair is increasing in value, it suggests that the EUR is becoming more valuable against the USD, and vice versa. The EUR/USD rate is heavily influenced by economic and political news from these regions. The EUR/USD pair began trading with a do