Leverage
In Forex transactions are carried out not only for the purchase of one currency against another, but also of the sale of one currency against another. Transactions are conducted in very large quantities, as a rule - from several million units of base currency. Therefore, brokers often provide the customer with leverage. Leverage provided by the customer at the time of the transaction and is described as 1: N, where N - number in which the broker reduces the required collateral for the transaction. Leverage is provided at no charge for this, because it is not a loan, and is only a requirement for partial support.
In the Alpha Forex leverage provided to all customers, is 1:100. This means that for every transaction carried out by the client, as a pledge from him will be charged 100 times smaller than the real value of the transaction. In most cases this is sufficient leverage.
For example to make a deal to buy 100 000 EURUSD did not need 141,000 U.S. dollars, but only secured by a pledge of $ 1410 U.S. dollars. Of course, since the transactions are carried out without supplies to be bought or sold currency, the euro bought to get your hands on bail only 1410 dollars will not work.
