50:1 Leverage: what does it mean? Getting great leverage on your position can help maximise the return on your spread bet or CFD investment, making it a critical element of the trade. Euro your account would be reduced to 4,000. Compare these two options: The risk of losing your money in scenario 1.
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Unfortunately, your prediction was wrong and the price of EUR/GBP drops over the next hour.84390 /.84400. Having used 1:100 leverage, you are able to open this position with a 1,000 USD investment (110,030 JPY). Each point is valued.0001. Bid:.5300 Ask:.5310 This means that GBP 1 US1.53XX If you want to buy GBP 10,000, click on the ask and enter 10,000 as the quantity of GBP that you wish to buy. Therefore, in this example your position margin will be 567.50 (3.34 x 20,000.84955). Therefore, in this example your position margin will be 754.94 (3.34 x 20,000.13015). . Unfortunately the trade you just placed is a loser, and you lose the whole 1,000.
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