Learn with FXCM: Over leveraging Your Account

RISK WARNING: http://www.fxcm.com/risk-warning.jsp Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves (take a position that is too big for their portfolio), and as a consequence, often end up forced to exit a position at the wrong time.

If an account value is $10,000 and the trader places a trade for 1 lot, he is in effect, leveraging himself 10 to 1, which is a very significant level of leverage. Most professional money managers are not allowed to leverage even this high. Trading in small increments on the account will allow the trader to endure many losing trades without experiencing large monetary losses.

*High Risk Investment
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Category:

Education

Tags:

• FXCM
• Forex Capital Markets
• Forex
• Forex Trading
• Currency Trading
• Forex Broker

[ForexCapitalMarkets]

Trading FX on margin carries a high level of risk and may not be suitable for all investors The high degree of leverage can work against you as well as for you Before trading FX you should carefully consider your investment, objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and you should not invest money that you cannot afford to lose You should be aware of all the risks associated with FX trading.

[FOREXFANTASY]

very nice video , thx