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Financial leverage is a double-edged sword
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[QUOTE="HOLA, post: 309136, member: 97887"] Leverage is a double-edged sword that can cause losses or make profits, and it all depends on choosing an appropriate leverage and how to use it correctly. The principle of the work of the financial leverage is based on allowing the margin percentage whenever the leverage is large by a greater percentage. Whenever the leverage is large, there is a large margin percentage available for trading. Therefore, the trader can open large bloat deals that may not be tolerated by the size of the initial deposit balance of the trader, which causes the account to be weighted, and here we can consider choosing an appropriate financial leverage according to the size of the deposit. Whenever the size of the deposit balance is large, it is preferable to choose a leverage Small financial and if the trader's balance is small, it is important to choose a financial leverage appropriate to the size of the trader's knowledge of the risk ratio that exists in the financial markets [/QUOTE]
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Financial leverage is a double-edged sword
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