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This field is for this websi. The leverage in this case is 1: One unit controls units. Leverage of this magnitude is significantly higher than the 1: These leverage levels are only possible due to the lower price fluctuations on the forex markets as opposed to the higher fluctuations on the equity markets. If the forex markets fluctuated as much as the equity markets for example, forex brokers would not be in a position to offer such high leverage as this would expose them to higher than acceptable risk levels.
Using leverage allows for significant scope to maximize the returns on profitable forex trades. After all, applying leverage means you can be controlling currencies worth or more times the value of your actual investment. Leverage is a double-edged sword however.
If the underlying currency in one of your trades moves against you, the leverage in the forex trade will magnify your losses. If this happens and your margin drops below the required levels, Rigel Commodity may initiate what is known as a "margin call ". In this scenario, we will either instruct you to deposit additional funds into your forex account or close out some or all of your positions to limit loss to both yourself and us.
Your trading style will greatly dictate your use of leverage and margin.