stop-loss order. Please take these seriously, forex is a difficult business for beginners, it tends to eat them for dinner if they aren't careful. Also, due to the less regulated nature of the forex market, it is important to go with a reputable company. You would only lose half of your funds (in this particular example, you would lose 400 EUR). However, if you would like to possess a little more knowledge beforehand, we encourage you to read. Ok, so now you know what leverage is, but what does leverage mean in Forex?
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If you go long a currency pair, you are hoping that the value of the pair increases. We need to multiply the trader's balance by the first value in the leverage ratio (i.e. Make sure you read this section to learn how you can go about setting up a forex account so that you can start trading currencies. Before you begin trading, you should learn about the positives and negatives of trading, and then try it without leverage. Economic and Forex news has a high impact on the situation on the market. Preparation can be as simple as practising leveraged and unleveraged trades on a demo account. The first thing that you'll need to do is decide on a broker. (For more on this, try. You can find out the answers to these questions yourself with a free.