Forex Center Instaforex: Dependence of the Commercial leverage and risk

At the moment brokers offer their clients to trade his shoulder from 1:1 to 1:500. However, a trader should not use all available leverage. Why? Trader must use the shoulder only when the current trend is wrapped in his side. Trader should plan a bargain and know exactly where to go from it, if the market moves in the desired direction. It only becomes known approximate level of risk, may determine how much money would be lost if the work stop-loss a trader. Typically, this loss should never exceed 5% deposit. If the position is strengthened by the shoulder so that it becomes a possible loss of, say, 50% commercial capital, the shoulder should be reduced until the potential loss is reduced to 5%. However, each trader has their own parameters of risk and may wish to deviate from generally accepted 5% in one direction or another, for example, many traders raise the level of maximum loss of up to 10% or even 15%. In other words, if the rate goes against you, you must be willing to lose in each transaction is not more than 5-10% of the total amount of his deposit. The greater the value of leverage, the smaller the settlements should be the currency against you for such a loss. Thus it becomes clear why the higher the leverage, the higher the risk of the loss limit. It also follows that the higher the leverage, the greater the amount of profit with the same value fluctuations. Traders should be noted that a great amount of money available for trading, the easier and safer to use the shoulder. Since marzhevaya position may lose money as quickly as they have, the trader must be sufficient equity (funds) that would serve as insurance against any «Drawdown» (marzhin-call). The point margin of risk is that traders are using borrowed money to buy or sell a contract. If the market does not make the move in a favorable direction, the loss will be multiplied multiply used shoulder. Often the brokers themselves set the maximum level Drawdown traders, for example in the company InstaForex marzhin-Call is 10%. InstaForex is ECN-broker providing quality services to trading in the market Forex. Cooperation with major marketmeykerami and brokers, contractors, coupled with an extensive client base InstaForex provide high liquidity and the ability to offer a truly speedy service to its customers.