I just wanted to add something about trading on leverage, not only can you lose all your money very fast, but you could also end up in substantial debt.
If you just buy and hold a currency, then you can only lose what you've invested. If you're trading on margin though, you can quickly get on the wrong side of the trade and not only do you lose all your investment, you end up owing them even more money to cover your defaulted trade. There's no limit to how much you might end up owing in debt.
As @mawit07 says, it's a very dangerous thing to be playing with, so unless you know what you're doing, don't trade on margin.
I think leverage is at the heart of why financial markets have a cycle of up and down. Like what Warren Buffet says, "only when the tide goes out do you discover who is swimming naked."
There will always be a loser in order for there to be a winner. Just do the best I can to avoid being the loser as much as I can :p
lol very true... There's nothing wrong with trading on margin, all my trading is levered but I've been doing it for a long long time. For newbs it's a very tempting idea, a fast way to make easy money, but we know it doesn't work like that. It's just a way to lose your money faster :-)
My advice is to become a successful trader first, and only then consider using leverage.
Both of you are to smart!!! But then again that is why your content rocks
thanks, I'll take the compliment but in my case I think it's the opposite..lol. I've made every single mistake there is to make, and learned from it, so I'd say it comes down to experience more than intelligence :-)