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Leverage

Leverage

In 2010 there were some changes in the regulations to the Forex market regarding leverage. A rule passed that brought leverage for US brokers down to 50:1 on the major currency pairs and to 20:1 on some of the exotic pairs.

This move towards lower leverage was great. You need to always keep in mind that increasing leverage increases the amount of risk that you're taking. So, it's always good to keep the leverage to a minimum. Typically going above 1:12 on leverage is a very bad idea.

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