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How to Select Leverage in
Online Forex Trading
By Timothy Stevens
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The first thing you need to do is to establish the amount of
money you want to invest in currency trading. Different
online forex trading brokers require different minimum
deposits. Ensure that the broker you select is suitable for
you as a forex trading beginner.
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Determine how much trading capital you are willing to
spend in a single trade. Forex trading involves taking huge
risks. However, your risks should be meaningful and well
calculated. Never attempt to risk all your trading capital in
a single trade. This would be very unwise and you could
stand a chance of losing all your money.
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without wasting your time and money, visit http://www.InstantForexCash.com/FreeReport.htm
A review of your past decisions is very important in
establishing your leverage. One of the key skills a forex
trading beginner needs is how to wisely use leverage to
increase profits. For example, if you have $20,000, first of
all break this amount into small amount which you will be
using per trade.
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Let say $ 2,000 for every single trade. In forex trading, a
standard lot is $100,000.Using this logic, your leverage
will be 100:2. Basically, divide the standard lot by the
trading capital per trade amount. If you have a problem
with this calculation, do more online research or talk to a
professional.
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6. To get FREE Instant Access to the E-course on learning how to start your own forex trading
without wasting your time and money, visit http://www.InstantForexCash.com/FreeReport.htm
Your broker will advise you on choosing your leverage.
They will help you analyze the advantages and
disadvantages of the leverages you take. They may decide
to liquidate your account if you make a bad selection of
your leverage.
Always be keen when selecting your leverage since is an
important determinant of your profits and losses.
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