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Message: <blockquote data-quote="spacetimer" data-source="post: 15568291" data-attributes="member: 485097">Forex leverage means Borrowing money from your broker for you to trade.This is not exactly taking a loan from your broker. Broker takes back the amount he gave you (for you to open a trade) when you close the trade.Example:If you have 1000$, this is enough to place a trade.You will get 0.1$ per pip and you can have a maximum stop loss of 10,000 pips.Still you can earn 0.1$ per pip trading 100$ having a 10X leverage.Only disadvantage of this is, now your Maximum Stop Loss is only 1000 pips.How this works...Your Broker gives you 900$ when you open the trade (100$ 10X leverage trade). So now you have 1000$ so you can earn 0.1$ per pip. When you reach -1000pips  (against you/ a loss). it means Your 100$ is over. So the trade is closed. Broker gets back his 900$ + Spread$.How to use the leverage effectively...When you analyse the market (technically), by indicators and ressistance & support...a good trader can tell how many pips should be his stop loss.If its only 25pips - Trade on 400X leverageIf its 25-50pips - trade 200Xif its 50-100pips -trade 100Xetc...If you are a day trader 100pips Stop loss should be enough for you.--------------------------------------------------------------------------------------This Thread Is Sponsored By <img src="/styles/default/xenforo/smilies/default/P.gif"  class="smilie" loading="lazy" alt=":P" title=":P    :P" data-shortname=":P" />Figher Pilot Reaction (New SL Android Game)<img src="https://fbcdn-sphotos-a-a.akamaihd.net/hphotos-ak-prn2/1185239_1433503903541562_1382358994_n.jpg" alt="" class="fr-fic fr-dii fr-draggable " style="" /><a href="http://www.elakiri.com/forum/showthread.php?t=1576003" target="_blank">Visit that thread too...</a>---------------------------------------------------------------------------------------</blockquote>

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