ROI on Forex Trading
ROI on Forex Trading
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External question — Personal Finance Stack Exchange
Author: Pip
Original post: https://money.stackexchange.com/questions/33734
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I have lately been reading up on what Forex Trading is and how it works. In many sources, it is described that a consistent investor can generate
15%
return annually.
My question is, what is this return based on? Is it based on your margin or is it based on your total position (which includes leverage).
Lets say you have a margin of
$1000
and your broker provides you with a leverage of
100:1
, so you have a position of
$100,000
.
Now is your return
15%
of
$1000 = $150
or is it
15%
of
$100,000 = $15,000
?
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Pip Source score (net votes, not local likes): 2 Original post: https://money.stackexchange.com/questions/33734 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I have lately been reading up on what Forex Trading is and how it works. In many sources, it is described that a consistent investor can generate 15% return annually. My question is, what is this return based on? Is it based on your margin or is it based on your total position (which includes leverage). Lets say you have a margin of $1000 and your broker provides you with a leverage of 100:1 , so you have a position of $100,000 . Now is your return 15% of $1000 = $150 or is it 15% of $100,000 = $15,000 ?
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