Increase your earning potential with FXPRIMUS high leverage ratio
You can not learn to speak a language by just knowing the basic alphabets of it. You have to learn the rules to combine the letters into meaningful words and further into sentences to communicate properly. Similar is the case with Forex trading. A basic knowledge of all the terms of Forex is an extreme requirement but is certainly not enough to be a successful trader. The knowledge of how to trade and the major currencies traded is just a basic. You should also know what to trade and when to trade.
The Foreign Exchange market is vast and most liquid financial market of the world. And, one needs to posses skills to reap the benefits of Forex. One can gain these skills with the help of leading brokers like FXPRIMUS, Windsor Broker, Dukascopy, and many more to name.
As a trader, you should know about different things involved in Forex trading in order to make huge money. A proper strategy is required to earn more in a short time. So, here are the two main strategies used in the Forex trading market.
Leverage Forex trading strategy:
It is also known as profit maximizing trading strategy. Here, a trader can trade with more funds than available in his or her account. The trader can borrow money from his broker, for this. The usual leverage ratio is 100:1 i.e. you can borrow 100 US dollar from your broker, for every 1 US dollar in your account. The leverage ratio may differ with brokers, minimum account deposit, and the account type. For example, FXPRIMUS offers a high leverage ratio of 500:1.
This is the most effective way to maximize profit. However, the risk involved in this strategy is huge. Therefore, many traders prefer the second strategy, which minimize risk and loss.
Stop-loss order:
This is popularly known as risk minimizing strategy. This strategy allows the traders to set predetermined prices at which they will stop trading. This help them in limiting their losses. The strategy can also be a backfire to you as you may decide to stop your trade when the value of currency goes up.
Many brokers provide online trading platforms which help in managing risks and profits more efficiently. You can choose from the FXCM trading platform, FXDD, FxPro MetaTrader or other online trading stations. Factors like initial investment, trading ability, risk tolerance, and geographical benefits or limitations. Therefore, consider these factors while making a Forex trading strategy.
The author is a content writer who loves to write on unique topics and unleash her thoughts. She was inspired by the tutorials provided by FXPRIMUS to new traders and FXCM trading platform for simplifying trading methods.
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