Work on Forex constructed in the following way:
to start to open the broker a real trading account and credited to him the amount of money you intend to operate (although the best practice on a virtual account!). Let it be the amount of $ 1000. What can be done with such a small sum? Here we come to the rescue, and such a mechanism as "leverage".
Leverage, which provides us forex-broker, can operate on borrowed amounts that exceed a multiple of our live trading account. The amounts are refundable forex brokers, but all the profits, which can be obtained when using them is still with us.
Consider this example:
Recently, the euro shows an active fall. From the beginning, the currency has lost 2,400 points. Of course, the main cause of the problem of weakening steel market in Greece and disturbing rumors about the possible collapse of the euro zone. This knowledge - a good chance to earn.
For example, June 4, 2010 we predicted the fall of the euro against the dollar and decided to sell euros for dollars. Let sold 400,000 euro at 1.22 to the amount of 488.000. This account is enough to have 5,000 USD, since the mechanism of leverage allows us to operate the sum equal to 100 times greater. A few hours later, the euro has dropped and we decide to perform the reverse operation. We buy 400,000 euros, we at the rate of 1.1966, which lasted 478.640 dollars. Profit from the transaction amounted to 9.360 dollars.
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