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Why is Forex So Heavily Leveraged?

Forex trades happen quickly, and involve fractions of cents. For this reason, Forex trading can involve leverage of 400 to 1.

When taking highly leveraged positions it is best to be very cautious! You can lose and be liable for this amount, not just the amount you had in your account. This is why it is recommended that you keep at least $500 in your account, even if your brokerage account has a lower minimum balance requirement.

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