Leveraged financing is a common practice in Forex trading, and allows traders to use credit, such as a trade purchased on margin, to maximize returns. Collateral for the loan/leverage in the margined account is provided by the initial deposit. This can create the opportunity to control USD 100,000 for as little as USD 1,000.
There are five ways private investors can trade in Forex, directly or indirectly:
• The spot market
• Forwards and futures
• Options
• Contracts for difference
• Spread betting
There are five ways private investors can trade in Forex, directly or indirectly:
• The spot market
• Forwards and futures
• Options
• Contracts for difference
• Spread betting
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