Leverage

Leverage is the ratio of the amount used in a transaction to the required security deposit (margin). It is the ability to control large dollar amounts of a security with a comparatively small amount of capital. Leveraging varies dramatically with different brokers, ranging from 10:1 to 100:1. Leverage is frequently referred to as gearing. The formula for calculating leverage is:...

Which Forex trading Platform has an adjustable leverage?

The three most common leverage ratios available from online forex brokers are 50:1 (lowest risk), 100:1 and 200:1 (highest risk). The K factor is a new way to look at leverage. The K Factor for the 100:1 leverage ratio is 1. The K Factor for the leverage ratio of 50:1 is .50, and the K Factor for the leverage ratio of 200:1 is 2. Some ...