Margin and leverage
At Gulf FX, we provide very flexible leverage amounts in our trading accounts; with a maximum leverage offered being approximately 100:1. Thus, our clients can use their volume leverage as they prefer. But a larger majority prefers to transact with the default leverage values that are based on some default margin settings. It involves the ability to borrow money from your broker for the purpose of trading currencies. This force can enable you increase your transacting power as more cash are made available to you than you deposit. However, it is important to know how leverage and margin operates before you enter into it as this will help you calculate your risk while trading. With the margins, you can make more profits than you would have managed with your original capital. But also this increases your risks, and one should remember that they can lose their initial stake. You should be careful though no to over-leverage your position based on equity in your account as a transaction based on margin and leverage can either increase your benefits or your risks if the market shifts against you.