leverage in forex trading ?

Leverage in forex trading?

How to leverage on Forex? , How to invest in Forex? , Who are Forex traders? , What is the trading volume in Forex? , What should I look out for in the brokerage house I choose when investing in Forex?

You can evaluate your investments efficiently thanks to the leverage system that allows you to make high volume investments with your small savings in forex, which is the most liquid market in the world.
Let's give a small example to better understand the leverage system;

Example of a transaction without leverage:

Assuming that the investor's initial capital is $ 1000 and we calculate the price of brent oil at $ 50, then 1000/50 = 20 barrels of brent oil can be purchased. Assuming that the price of brent oil rises to $ 55 after a while, if the investor sells 20 barrels of brent oil in the hands of $ 55, he will get 20 * 55 = $ 1,100. An investor who has $ 1,000 at the beginning of his investment can get a return of $ 100 as a result of this transaction.

Leveraged transaction example :

Let's not forget that 1 lot in Brent oil is equal to 1.000 units and 1 unit is equal to 1 barrel. Suppose we bought Brent oil's barrel for $ 72. When Brent trades 1 lot in oil in the Forex market, a 1,000-barrel position can be taken. The size of the 1 lot position taken is $ 72 * 1,000 barrels = $ 72,000. Consequently, when using 10 to 1 leverage in the position taken, it is sufficient that the required collateral is 72.000 / 10 = 7.200 dollars. In other words, $ 72 thousand Brent oil transactions can be realized with $ 7,200 collateral.

Thanks to the leverage system offered by the Forex market, it can trade 72 thousand dollars at a price of $ 72 a barrel using 1000 to 1 leverage. When the price of Brent oil rises to $ 77, this position (77-72) * 1,000 = $ 5,000 can be returned.

It should not be forgotten that; The leverage system includes the same risk of loss as well as high-profit opportunity.

How to invest in Forex?

In order to invest in the forex market, which provides significant advantages to its investors with its market structure and transaction characteristics, it is necessary to create an investment account in a brokerage house licensed by the Capital Market Board (SPK). Having knowledge about the forex market by making use of the trainings and seminars provided by the selected intermediary institution is of great importance in terms of managing the investments correctly. Therefore, investors who want to invest in the forex market need to practice the market functioning, market behaviors and strategies of investment instruments. Thanks to the trial accounts offered free of charge by intermediary institutions, you can gain experience without taking risks by trading in real money conditions with virtual money.

With the regulation brought by the CMB, each investor is required to take a certain number of transactions from his trial account.

Who are Forex traders?

Besides the individual investors who make up the Forex market; central banks, banks, funds, portfolio management companies, companies are also included. On the basis of the presence of so many participants in the forex market; Its market dynamics, transaction flexibility, and freedom lie.

What is the trading volume in Forex?

In the forex market, which has reached 6 trillion dollars daily trading volume, 78 percent of the transactions are made on dollars. As forex, which enables it to operate in Asian, European and American markets, is the world's most active market, 80% of open positions remain open for less than 1 week, and 40% for less than 2 days. Thus, the forex market, which offers important investment opportunities in the short and long term, is preferred by more and more investors due to its full integration into the world financial markets and being closed to its manipulation.

Is Forex reliable?

One of the main questions in the minds of investors who want to invest in the Forex market is how reliable brokerage houses are. Unlike forex brokerages international operations, brokerage firms operating in Turkey, the Capital Markets Board (CMB) providing services to investors under license. GCM Securities Inc . It is among the first licensed institutions.

Thus, the capital along with the license requirements institutions to mediate forex transactions in Turkey, technological infrastructure, process rules, the maximum leverage ratio of 10: Limitation to 1, the guarantee of bringing a number of security and market standardization such as the warehouse on the basis of Takasbank customer CMB, which performs protects the investor with regulations.

What should I look out for in the brokerage house I choose when investing in Forex?

Before investing in the Forex market, it should be checked whether the selected intermediary institution has a license certificate issued by the CMB. It is necessary to pay attention to whether the brokerage house provides training in order to use the advantages offered to the investors of the forex market, where the logic “knowledge is power” is dominant and to be informed about investment strategies. It is also important that the brokerage house offers a free trial account service that will prepare the investor for the market in real conditions and whether it is available whenever any problems are encountered.

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