Let’s say I have $1K balance and my broker offers 100:1 leverage so that my buying power is $100K. I buy the Yen for $100K because I predict that Yen will rise in a week or so but I also predict that it will initially fall for like a day or two. So when the Yen falls in the first 2 days, my equity - as I understand it - will be negative. Will the broker close my position if they see that my equity is negative OR can I have this position open for as long as I like and hope for Yen to rise some day?
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September 29th, 2009 at 8:55 am
There are soo many articles regarding this terms.
Check it out.
http://forexforbeginners2.blogspot.com/2008/02/how-to-use-leverage-in-forex-trading.html
http://www.forex.com/forex_understanding_margin.html
http://www.informedtrades.com/19413-understanding-leverage-forex-trading.html
September 29th, 2009 at 8:55 am
The Bolgspot one is great……………………. check out http://www.youtube.com/user/ForexTradingTV too