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A 1% move would net you $10k, not $1k. That's why it's so alluring. You can gain (or lose) a lot when you're leveraged at 100:1 (as most retail FX brokers allow
by jayess 12y ago
A 1% move would net you $10k, not $1k. That's why it's so alluring. You can gain (or lose) a lot when you're leveraged at 100:1 (as most retail FX brokers allow) and the currencies move just a small amount.
- branchless 12y agoFX for the common man is recent. It's the new housing: access to leverage.
- waps 12y agoThis makes me wonder. Aren't those retail investors all indebted to FXCM now ? They mostly made the bets using the platforms, (I assume) very little bets were made by FXCM itself.
- cheatdeath 12y agoCorrect. "FXCM Inc. (FXCM), which handled a record $1.4 trillion of trades by individuals last quarter, said clients owe $225 million on their accounts after the Swiss National Bank’s decision to abandon the franc’s cap against the euro roiled markets worldwide." http://www.bloomberg.com/news/2015-01-16/fxcm-faces-losses-on-franc-trades-as-swiss-shock-spreads.html http://www.bloomberg.com/news/2015-01-16/fxcm-faces-losses-o...
- pjc50 12y agoOr if you have a FX-denominated mortgage (common in Hungary), you can have both!