Hello Honey-Readers,
very important is the Margin and Leverage Knowledge. You can Trade Currencys with 1.000 is the same 0.01 Lot, so is small Trading Amount, but for Indices you need in the most times way more Money, so you have for example 12.000 in the German30 Indice.
1 Point is 1 Euro, so you must have 12.000 Euro without Leverage and with an Leverage from x4 you need 3.000 Equity (3.000 own Capital): 3.000 x 4 = 12.000
This is way more higher than in Currency Trading: For one Currency Position with 1.000, because 1.000 : 4 = 250 Equity (own Capital).
New Information will be coming out on this Blog, for your Information. But what you like to do with this Information is alone and allways your own Decision.
So take care of your Money and use never to High-Leverages.
Kind regards and a good time wish you
Marco by tradingchannelblog