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January 1st, 2007, 04:43 PM
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| if I use 1:500 leverage how could it do more damage than using 1:200 leverage? Lets assume the FOREX trading now is in the wrong direction. I don't understand how come using 1:500 leverage could give more damage than 1:200 leverage. |
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March 26th, 2007, 03:03 PM
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| if I use 1:500 leverage how could it do more damage than using 1:200 leverage? your position only needs to go down by .2% instead of .5% for you to lose everything.           |
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June 18th, 2007, 12:23 PM
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| if I use 1:500 leverage how could it do more damage than using 1:200 leverage? The more leveraged you are the more borrowed money you have. When you start losing money you still have to pay your creditors. You will only need to lose a little bit of money before you can no longer make your obligations to creditors and you default. If you are unlevered or less levered you have less interest payments to make so you can still lose some money and have some left to pay creditors. |
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