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  2. What is forex trading? - AOL

    www.aol.com/finance/forex-trading-212232317.html

    Leverage: Most forex trading involves the use of leverage, or borrowed money. The nature of leverage is that it magnifies gains and losses, meaning a small price change has a major impact on your ...

  3. Leverage (finance) - Wikipedia

    en.wikipedia.org/wiki/Leverage_(finance)

    In finance, leverage, also known as gearing, is any technique involving borrowing funds to buy an investment.. Financial leverage is named after a lever in physics, which amplifies a small input force into a greater output force, because successful leverage amplifies the smaller amounts of money needed for borrowing into large amounts of profit.

  4. Retail foreign exchange trading - Wikipedia

    en.wikipedia.org/wiki/Retail_foreign_exchange...

    Retail forex trading has been promoted by some as an easy way to make profits and has thus been the focus for a number of foreign exchange frauds. [9] In response, financial regulators in a number of countries have introduced restrictions or provided warnings about this type of trading as well as legal actions against perpetrators. [ 10 ]

  5. Foreign exchange swap - Wikipedia

    en.wikipedia.org/wiki/Foreign_exchange_swap

    In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward) [1] and may use foreign exchange derivatives. An FX swap allows sums of a certain currency to be used to fund charges designated in another ...

  6. Derivative (finance) - Wikipedia

    en.wikipedia.org/wiki/Derivative_(finance)

    Provide leverage (or gearing), such that a small movement in the underlying value can cause a large difference in the value of the derivative [24] Speculate and make a profit if the value of the underlying asset moves the way they expect (e.g. moves in a given direction, stays in or out of a specified range, reaches a certain level)

  7. Foreign exchange market - Wikipedia

    en.wikipedia.org/wiki/Foreign_exchange_market

    The foreign exchange market (forex, FX (pronounced "fix"), or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.