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Leverage, the booster to gain more, is the indirect borrowing that enables the traders to have the ability to maximize capital with a smaller account balance.

If your broker is an STP (Straight-Through-Process) then its liquidity providers grant leverage. On the other hand, if you are trading with a Market Maker then the broker itself may also grant you with this type of indirect ”loan”.

In the scenario of a false trade, though, the chances for a big loss increase. Either a novice or advanced trader, capital control must be implemented at all times.

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Thursday, 23 Jun, 2016 / 1:34

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