Risk/Reward Level

Currency exchange rates constantly change, and mostly fluctuation in rates is minimal. Generally speaking, a daily movement of around 1% is quite ordinary.

The leverage is the loan you get from your dealer, which enables you to transact quickly and cheaply with a small amount of initial capital. Trading currencies on leverage increases your buying power significantly. (For example, leverage will allow you to buy or sell 10,000 USD with only $25).

In Forex trading, when you trade for example with a 1:400 leverage (hence X400), a rate change of 1% can turn into a 400% change. If for instance you decided to trade the Euro against the Dollar for $25 and the Euro increased in value by 1%, you're buying power increases drastically, which as a result means you could profit 400 times that value change.

If the rates fluctuates in such a way that it works against you, you will lose your initial trading amount of $25.

We enable you to select from three different leverage options of X100 (1:100), X200 (1:200) and X400 (1:400). Each of these options represents a different risk/reward level since trading on leverage increases your risk/reward proportion.

An example of X400: