Reinko

Strategies for Currency Investors

Indeed a nice article, I have tried some demo programs myself and that was big fun.

But the reason I give a reaction is the next:

When you start a demo program they always contact you by phone, to my surprise one of those 'advertising people' told me it was an advantage that they had leverages of up to one thousand times...

This is of course a stupid selling proposition because when you trade leveraged one thousand, you need a big big margin in order to pay that call when it comes.

All leverages above 10 are fake because you can make only smaller trades if you use a higher leverage (when you are a bank it is different, why pay the margin call when you can also classify it as a Level 3 asset?).

But it is great fun and you better use one of those demo's first because I can remember I wanted to buy Canadian dollars, but the pair was noted in reverse so I actually sold them.
So do your thinking because selling Euro/US$ is the same a buying US$/Euro.
And I was looking at my losses and I did not grasp it...