In order to make money on the forex market you have to buy low and sell high quite simple let's have a look at the example how much money can you theoretically make by trading currencies.
Let's assume that you have one thousand US dollars on your trading account the current exchange rate of euro versus the US dollar is .25 in other words for one euro you get one dollar and 25 cents you forecast and during the day euro.
Would rise versus the US dollar based on this forecast you buy 800 euros for your one thousand dollars your forecast is correct euro rises from one point two five to one point two six dollars being in the profit you decide to close the trade and exchange 800 euros back to 008.
You are processed in this trade is eight dollars not that much right you raise a fair question would it be possible to increase profits in order to maximize your profit potential you can use leverage leverage is alone take meal provides you to trade Forex the size of the loan can differ but tick mill provides you with up to 500 times more funds than your initial capital.
Which also increases your profit potential to 500 times great right still please remember increased leverage means not only more profit potential but also more risks managing your risks is very important.
let's have a look at an example of how to use leverage of to 500 you have the same $,000 on your account and you estimate that euro will rise versus the US dollar therefore you decide to take the biggest possible loan from your broker 499 thousand dollars now with the exchange.
Rate of .25 you exchange all of your $500,000 to 400,000 euros at the moment when the exchange rate rises to one point two six you exchange the four hundred thousand euros back to five hundred and four thousand dollars as a result you now have five thousand dollars on your account after turning alone to your broker.
So your net profit is $4,000 an incredible results after just one day of trading in this example we have looked at the scenario when your forecast turns out to be correct but what would have happened if instead of rising euro had fallen against the US dollar in this case your trade would be open until your losses.
Equal your initial deposit which is $,000 at this point your trade would be automatically closed and the broker takes back the loan consequently a case when you can lose the broker's loan is almost impossible taking everything into account you have now seen how leverage can increase your profits if you make the right decisions at the same time.
Leverage can also work against you if you make the wrong estimations and don't limit your losses let me tell you why I trust techno take male likes to see the client succeed in trading your funds are safe and segregated tick Mills low Forex friends or the difference between buy and sell price increase your profitability you can test your trading.
Skills on global markets with a small initial deposit of $00 you can use leverage above 2 2 500 tick mill allows all trading strategies including scalping news trading and arbitrage and also execute trades in extremely short time this is why tick mill is highly respected in the forex community visit the website of tick mill to find out more you.