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Friday, May 27, 2011

Forex trading can be highly leveraged

Forex trading can be highly leveraged. The low margin deposits normally required in forex trading (usually 1% of currency controls) permit an extremely high level of power (ie 1% margin deposit requirement permits leverage as high as 100:1). Accordingly, a relatively small price movement in the currency can result in immediate and substantial losses for investors. Leverage is used to this trading program will not exceed 10:01 and initial support for the work usually begins in less than 1:1.

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