Maximum Leverage

Dictionary Says

Definition of 'Maximum Leverage '

The maximum size of a trading position permitted through a leveraged account. Typical leverage available on currency trades through forex trading institutions ranges from 50 to 400 times. With a leverage ratio of 50, an individual with a margin deposit of $5,000 can initiate a trading position of up to $250,000.
Investopedia Says

Investopedia explains 'Maximum Leverage '

Exceeding or even getting close to the maximum leverage point can be an untenable situation for forex traders, since a small price movement can quickly wipe out the entire amount of equity in the trading account.
Search results for

'Maximum Leverage '

  • New Forex Rules Cap Losses - And Profits - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0310/New-Forex-Rules-Cap-Losses---And-Profits.aspx
    ... The proposed rules by the CFTC would allow maximum leverage of 10:1 for retail
    investors in the forex market, compared to the current leverage limits of 400:1. ...
  • CFA Level 1 Study Guide - Derivatives - Minimum and Maximum Values ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/minimum-maximum-values-for-options.asp
    ... 11.29 Degree of Total Leverage; 11.30 Dividend Theories; 11.31 Dividend Growth Rate
    and ... 15.30 Interest Rate Caps and Floors; 15.31 Minimum and Maximum Values for ...
  • Forex Leverage: A Double-Edged Sword

    http://www.investopedia.com/articles/forex/07/forex_leverage.asp
    ... 200,000/10,000). This also means that the margin-based leverage is equal
    to the maximum real leverage a trader can use. And since ...
  • Forex Broker Guide: Platforms And Account Details | Investopedia

    http://www.investopedia.com/university/forex-broker-guide/forex-broker-guide2.asp
    ... Maximum Leverage Forex traders have access to a variety of leverage depending
    on the broker and the country where the broker is located. ...
  • Reinvesting Capital Gains In Leveraged Portfolios

    http://www.investopedia.com/articles/stocks/07/reinvest_capital_gains.asp
    ... Here's why: Let's say that an investor is able to purchase shares at a maximum leverage
    level of 4x and at an interest cost of 5%. Using $100,000 of equity ...
  • Covered Call Strategies For A Falling Market

    http://www.investopedia.com/articles/08/covered-call-strategy.asp
    ... Margin calls occur when equity falls to 30-35% of the value of the account,
    which is equivalent to a maximum leverage ratio of about 3.0×. ...
  • Top Reasons Forex Traders Fail

    http://www.investopedia.com/articles/forex/10/top-reasons-forex-traders-fail.asp
    ... Many forex brokers require various amounts of margin, which translates into the
    following popular leverage ratios: Margin, Maximum Leverage. 5%, 20:1. 3%, 33:1. ...
  • Leveraged Investment Showdown

    http://www.investopedia.com/articles/optioninvestor/07/sources-leverage.asp
    ... A 50% initial maintenance margin requirement results in a maximum initial leverage
    ratio of 2-to-1, or $2 of assets for every $1 of equity. ...
  • The Dangerous Lure Of Cheap Out-Of-The-Money Options

    http://www.investopedia.com/articles/optioninvestor/10/lure-of-cheap-options.asp
    ... However, human nature – and the lure of easy money – being what it is, it is quite
    common for traders to "overreach" by applying maximum leverage to a ...
  • Adding Leverage To Your Forex Trading

    http://www.investopedia.com/articles/forex/08/margin-leverage-forex.asp
    ... Therefore, with a $10,000 account and a 3% maximum risk per trade, you should leverage
    only up to 30 mini lots, even though you may have the ability to buy or ...

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