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system
how does leverage work?
user
for sake of simplicity, say the euro is trading at $1.25. you have leveraged control of $100,000 given the 100x leverage. if you are bullish on the euro, you are long 80,000 euros. for every 1% it rises, you gain $1000. if it drops by the same 1%, you are wiped out, you lost your $1000. with the contracts i am familiar with, there is a minimum margin, and your account is "marked to market" each night. if your positive balance drops too low, you get the margin call. it's a zero sum game, for every dollar you make, there's a guy on the other side of the trade. odds are he's doing this full time and is smarter than you.
assistant