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A question about forex leverage?
How come a lot of forex brokers offer leverage as high as 200:1?
Wouldn’t offering such incredibly large leverage be dangerous, as their customers can very easily be wiped out?
Its amazing that brokers would be willing to assume so much risk, especially considering they wouldn’t offer that kind of leverage for stocks.
Some doggy forex brokers may be offering leverage as high as 400:1. For forex traders, it’s seriously very high risk and it can easily wipe off your balance within minutes.
As far as forex brokers is concern, offering high leverage is still on their favors, because they can easily cut your open position whenever margin call.
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