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However these are not market participants, who catch investors attention. Neither currency pairs. In fact, what rivets financial world’s sight is leverage. It is responsible for such a huge turnover, since the whole capital involved in forex is few dozen times less.
The risk profile of currency trading is symmetric . It is to observe that the angle between curve and X axis depends on leverage. As the exchange rate may endlessly rise, also ROI is potentially unlimited. Unfortunately it applies as well to loss, due to investing on credit.
As far as advantages of investing in Forex are concerned, one of its most appreciated traits is financial leverage, allowing speculators to turnover amounts 100, or even more, times bigger than their own inputs, what has just been mentioned...
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