The currency pairs that are most popular for trading are those with the highest liquidity, meaning they are the most frequently traded.
These include major FX pairs such as AUDUSD, EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, and USDJPY.
Other commonly traded currency pairs that traders like to diversify their portfolios with are the minor FX pairs. These include AUDCAD, CADCHF, EURAUD, GBPCHF, among others.
Leverage allows you to trade using borrowed funds, effectively letting you control larger positions with a smaller investment of your own money. Your broker essentially extends a form of credit that amplifies your buying power.
When used alongside a robust risk management strategy, leverage in forex trading can enhance your potential returns by making it more profitable to capitalize on minor price fluctuations. However, it can also increase your risk of loss if not managed properly.
To minimize potential losses and improve your chances for higher returns, it is crucial to have a well-planned risk management strategy and to ensure you’re comfortable with the level of exposure before selecting your desired leverage.
Margin in online forex trading refers to the amount of money required to open a trading position. It serves as a security deposit to cover potential losses due to price fluctuations. Forex brokers typically set this as a percentage of the overall trade size, which is influenced by the leverage you select.
To initiate a forex trade online, you must have sufficient funds in your account to meet the margin requirement. By setting an appropriate margin level in line with your risk management plan, you can better control your trades and mitigate potential risks.
Significant market volatility and price gaps can occur when important news is announced. Using high leverage during such volatile periods can be risky, as it can lead to substantial losses. For this reason, we limit leverage to 1:200 for all new positions on affected instruments during news releases.
When intervals of increased margin requirements for various news releases are less than 15 minutes apart, these periods may be combined into one extended duration for the relevant instruments. We will send you an email with detailed information on any changes to margin requirements on your trading platform.
Once the specified period ends, the margin for positions opened during this time is recalculated based on the account’s equity and the selected leverage level.
Dealing in any form of cryptocurrencies falls outside the scope of the Company’s licensed activities. Cryptocurrencies markets are unregulated services which are not governed by any specific regulatory framework. The provision of such services is not being directly provided by the Company but through licensed third parties.
Risk Warning: CFDs are complex instruments and carry a high level of risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether trading is appropriate for you. You should not invest money that you cannot afford to lose. Leveraged products may not be suitable for everyone and may result in loss of all your capital. Read Full Risk Disclosure here.
Any material and information included herein are intended for general marketing purposes only and does not constitute investment advice or recommendation nor an invitation to acquire any financial instrument and/or be involved in any financial transaction.
Treten BKR, S.R.L is a company registered before the Registry of Legal Entities of the National Registry of Costa Rica, assigned the legal entity ID number 3-102-904685 and having its registered address at Heredia, San Francisco, Santa Cecilia, from the transit plant three hundred and fifty meters to the west Vista de las Flores Condominium house number three, Costa Rica and its operating offices at 16th Street 6-17, Edificio Piale, office 206, Zone 10, Guatemala, Guatemala. Within its activies, the company carries out business providing over-the-counter (OTC) foreign exchange activities, brokerage, financial instruments and digital currency services.