Tuesday, October 13, 2009

Margin Trades and ROI in Forex

This example below shows how margin trading in Forex can magnify your investment ROI.
Taking $1,000 in a 100:1 margin account as example, you are now granted the purchase power of $100,000.
Say that you execute the trade between USD/JPY: Long Japanese Yen in USD/JPY 109.2 (meaning buying 109.2 Yens with 1 USD) and short JPY at the price of USD/JPY 109.0.

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