Tuesday, May 10, 2011

[input Stack Size=5000]

How does leverage or leverage

To illustrate the leverage effect, use an example. And a question for you: Do you ever płynąłeś rowing boat? Probably. And if ever płynąłeś boat? It does not necessarily need to answer this question affirmatively, to understand the essence of the lever.

Compare, please, your work done in moving a rowing boat and motor. And then think about which of those two ways you can move faster.

difference is huge. Well motorboat is the lever, the opportunities are greater when you insert a smaller work (from you) than a rowboat. So what is the principle of leverage.

The so-called finance. leverage allows you to control your own small contribution to a larger amount (eg, credit for investment).

wrong lever used generating a loss. For this reason, if used properly it must be very careful. Risk control in this case is particularly important.

EXAMPLE:
Futures contracts are a kind of leverage. They allow you to earn a lot - but also as much to lose! This makes it so. multiplier, which is 10 If you buy a contract for the wig, is counting on the decline in the price index. Every movement of the stock index by 1 point, the variation in 10 zł. (1 point * 10). Everything happens then 10 times faster than normal. Therefore, you can make fast money (and quickly lose their capital.)

that lever on the Forex can be as high as 1 in 200! I feel a slight swing determines the profit or loss.

0 comments:

Post a Comment