A standard example given by the staff of a forex broker is as follows. Consider the chart shown in the figure below, which shows the movement of the euro-dollar rate.

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Is it possible to make money on Forex? Site Wizard
You don`t need to have a million in your account. Just $ 10,000 is enough…

If the client had sold 1 million euros on October 25, 2011 at a price of 1.390 EUR / USD, and on December 22 of the same year bought this million at a price of 1.310 EUR / USD, as shown in the figure, then the profit he received would have amounted to 80 thousand dollars. ... Good money, isn`t it? These $ 80,000 would have been received for the $ 1,390,000 invested in the transaction, which in two incomplete months would have given a yield of 36% per annum. Not bad?

Leverage

Not so bad. The trouble is that the average investor doesn`t have that kind of money. “It doesn`t matter,” the forex broker like ForEx scalping strategy answers him: I`ll give you leverage!

Example

You don`t need to have a million in your account. Just $ 10,000 is enough. Then, with a leverage of 100, you can buy and sell lots of up to $ 1 million. And with a leverage of 150 - up to one and a half million. " This is what the forex broker says. This means that if you have a leverage of 100, you should count the income not on the invested $ 1,390,000, but in the amount 100 times less !!! This, of course, increases the profitability 100 times and gives a fantastic 3600% per annum !!! This is fantastic - any person working in the financial market will tell you. And he will be right.