What is Forex?
Forex = Foreign exchange (also used for gold, silver, oil and indices industry)
Leveraged Trading = deposit $100, trade up to X400 so you can trade up to $40,000
Example trading
Oil price is $60.00, you buy with $60 (X50) 50 barrels of oil, if oil goes higher to $61 you made $50 if it went down to 59 you lost $50.
Where is the money?
Forex companies generate revenue from the SPREAD between the buy and sell prices of the asset:
For example:
USD/JPY buy price is 99.83 and sell price is 99.80
The difference between the buy/sell price is 3 pips (range from 1-10)
If you buy with $100 (X400) 40,000 USD/JPY
You buy at the higher price of 99.83
Your spread is 12$ (12% of the transaction)
You sell at a price of 99.93 you profit 40$
Revenue share is calculated from the spread (12$)
Happy Trading and feel free to contact me anytime