October 31, 2008, Newsletter Issue #78: How Does Leverage Profit a Forex Investor?
Tip of the Week
One way of thinking about leverage is that it is a giant magnifying glass -- without leverage, your wins and your losses would be much lower.
If you make a 20% return on $1000, it is much smaller than a 20% return on $100,000. The fractional currencies you deal in mean that you have to have a large amount of money in the game in order to realize a substantial profit.
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Thank you for your interest and good luck!
Forex Club, New York
