Borrowing Money From The Broker

Discussion in 'General Trading Discussion' started by Benigna Mazzi, Feb 1, 2022.

  1. Benigna Mazzi

    Benigna Mazzi Senior Investor

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    In the forex market, traders often take a position by borrowing money from the broker to amplify their trading power. This is referred to as forex leverage because it amplifies the effect of price changes on your account balance. Eurotrader is a platform for professional forex traders who want to practice their skills without needing huge capital or having to deal with the high stress of margin trading.
     
  2. mikenovo

    mikenovo Senior Investor

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    Leverage is good, but when it is too large it tends to create problems for the traders, which is why most reputable regulators capped it at pretty low levels.
     
  3. Manon

    Manon Active Member

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    Another good way of receiving assistance from a broker is trading credits, if your broker offers that you can take advantage of. These are especially good because most brokers offer them on interest-free rates and with no terms.
    I have greatly benefited from the one by Forexchief, as they give trading credits up to 70% of the deposit on majority of all accounts types available. This is definitely a good way to top up your trading funds, but I sense it is not common with many brokers.
     
  4. mikenovo

    mikenovo Senior Investor

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    I would rather trade with just my own money, I think it is less risky.
     
  5. Manon

    Manon Active Member

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    True, but not many can afford the luxury of trading with just their money and they really want to trade. My advise would be to develop proper risk management when you decide to use whatever top up that is offered by brokers, because most of them like leverage always have some consequences when you fail.
     
  6. Jason@

    [email protected] Member

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    I have been with forexchief for a while now and I never gave a thought to this incentive from them as I felt there might be more to it, but seeing it now from a fellow trader and all I have read from their site just gave me the push to try it out. Thanks!
     

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