Comments on: Can any of you explain for me about the meaning of "leverage trading" in forex trade? Thank you very much!? http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/ Discussion of Forex Trading and Currency Trading Wed, 23 May 2012 00:27:46 +0000 http://wordpress.org/?v=2.3.3 By: Yardbird http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13513 Yardbird Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13513 "Leverage" is when a person uses borrowed money to make trades, in order to magnify their returns, for good or ill, depending on how the trade goes. Many brokerages will lend you money to trade with. Leverage is similar to "margin." "Leverage" is when a person uses borrowed money to make trades, in order to magnify their returns, for good or ill, depending on how the trade goes. Many brokerages will lend you money to trade with. Leverage is similar to "margin."

]]> By: j-rube http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13514 j-rube Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13514 leveraging is when you borrow money at a fixed interest rate and you then invest the borrowed money in the hope that your money grows faster then the interest rate on your borrowed money. if your investment does grow faster you can pay back the borrowed money and keep the profits you made off the investment. in other words you can make money from investing other peoples money. this could backfire because if your investment falters you still need to pay back the borrowed money. this is why the derivatives and the credit default swaps caused the housing market to fail. the derivatives are comprised of these high risk investments. foreign exchange leveraging is just leveraging used in the market for currency. leveraging is when you borrow money at a fixed interest rate and you then invest the borrowed money in the hope that your money grows faster then the interest rate on your borrowed money. if your investment does grow faster you can pay back the borrowed money and keep the profits you made off the investment. in other words you can make money from investing other peoples money. this could backfire because if your investment falters you still need to pay back the borrowed money. this is why the derivatives and the credit default swaps caused the housing market to fail. the derivatives are comprised of these high risk investments. foreign exchange leveraging is just leveraging used in the market for currency.

]]> By: picador http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13515 picador Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13515 There seems to be a misunderstanding that "leverage" and "margin" are technically special ways of investing. This is not the case. You a merely borrowing the difference between the purchase price and your down-payment. The difference between getting your loan from a broker and a loan shark is that your broker will protect himself and you by selling your stock when it looks like a likely loser. There seems to be a misunderstanding that "leverage" and "margin" are technically special ways of investing.
This is not the case. You a merely borrowing the difference between the purchase price and your down-payment. The difference between getting your loan from a broker and a loan shark is that your broker will protect himself and you by selling your stock when it looks like a likely loser.

]]> By: Jack P http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13516 Jack P Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/04/23/can-any-of-you-explain-for-me-about-the-meaning-of-leverage-trading-in-forex-trade-thank-you-very-much/#comment-13516 Leverage is simply borrowing money in an asset, just like buying a house by taking out a loan in it. Be careful with leveraging to much because you will not be able to meet margin payments, Leverage is simply borrowing money in an asset, just like buying a house by taking out a loan in it.

Be careful with leveraging to much because you will not be able to meet margin payments,

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