Leverage understand and clarify its practical

You can understand leverage through the following example: -

 Head of the owner $ 10,000.

 Want to buy a record contract worth ($ 100,000), while do not have this amount.

Your leverage (1: 100), which gives you the possibility of every dollar purchase for $ 100.

The broker book part of your balance ($ 1,000, for example) to buy you a standard contract (so-called margin reserved).

Remaining in your account ($ 9,000) is called the margin available.

If the deal is closed, for example, net profit ($ 2,000), you'll be able to get this profit in addition to the full value of the reserved margin ($ 1,000).

The result: your account becomes more than $ 12,000

If, for example, it closed the deal on a net loss of ($ 2000-) Vsicom mediator book value losses of available margin, given the reserved margin.

The result: at least Hspak becomes $ 8,000.