Wednesday, May 16, 2012

Yadix Forex Broker – Understanding Leverage

Yadix offers clients a flexible leverage range to suit their trading style or according to the settings of their automated trading tools or Expert Advisors.

Leverage can be presented in many positive ways to influence your decision to choose a high level of forex leverage; however the Yadix team is committed in providing a transparent explanation as to how leverage can benefit your trading account as well as how the wrong choice of leverage can negatively affect your leveraged forex trading account, balance and risk strategy. 

As Yadix is an STP broker, we highly recommend that your choice of leverage should be set to a maximum of 1:100. A dealing desk forex broker will recommend the use of a higher level of forex leverage and this is because the higher the leverage, the higher level of risk on your account meaning that you have a greater chance to lose your balance using a higher leverage. This is where a dealing desk forex broker makes profit on their clients’ losses.

An STP Forex Broker, only makes a commission based on clients trading volumes, and our aim is to help you generate more forex traded volumes and not push you to lose your balance. Clients must remember that in forex, leverage can work two ways, either for or against you and it is the main reason why clients lose money when trading forex. We highly recommend that all traders use a lower level of leverage, or at least to understand the full risk of misusing leverage.

Your Expert Advisor is always welcome at Yadix, and we are happy to accommodate your leverage settings to ensure that your EA operates without issue and maximum efficiency. If you have any questions regarding the leverage levels offered by Yadix, or the implementation of your EA on our MT4 forex trading platform, please feel free to contact our professional forex trading advisors.

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