What is leverage?
TenTrade allows you to set your own trading limits with the freedom to choose a leverage ratio ranging from 1:1 to 1:500, depending on your trading goals, exposure needed and risk appetite. In Forex trading, price movements are always measured in pips, which are the smallest conversion in currency rate, found in the second to fourth fraction place of the rate depending on the currency instrument.
When, for example, a currency pair like USD/CAD has a rate that has increased from 1.3450 to 1.3550, then there is a price movement of 100 pips. If an investor trades with large amounts, say, $30,000, while seeing a movement of 100 pips, they can really make good profit by using a high leverage ratio to gain exposure.
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What is Margin?