Tuesday, October 13, 2009

Market risk is regardless of leverage

The market risk is dependent on the volume you trade, which is regardless of the leverage ratio. It depends on your choice whether you would have intention to trade the biggest position you are allowed to take. Higher leverage is often said to be more risky than the lower one, but you should understand the higher leverage allow you to some more rooms to decide the size of your position by yourself, which is quite advantageous for all investors because the amount of trading might become bigger using the same margin like the mortgage loan based on the collateral value.

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