The investor in the currency market

Once an order is placed with a broker, the trade is executed within seconds. It is, of course, not as easy as that.

Whenever a pair of currencies is bought or sold, there must be someone at the other end of the transaction.
It is very unlikely that the investor will always find someone who is interested in buying and selling the same two currencies at the same amount, and at the same time.

Hence, the question remains, “How is it possible that the FX investor can buy or sell at any time?” This is where the FX market makers come in.

What is Leverage?

Leverage is simply a way to make you invested capital work harder.

For example, if you have $1,000 to invest and you have a leverage of 100:1 you have 100 x $1,000 or $100,000 you can invest.

So how do you get this leverage?

One simple way to get leverage is to open a FX trading account ( don’t worry if you know nothing about forex we will come that in a minute), a FX broker will grant normally up
to 100:1 as standard, as soon as you open an account.

Of course leverage can work for or against you, so must be able to run profits and cut losses quickly and use strict risk control.