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Its called using leverage or buying on margin, but putting it simply they take out a loan.

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9y ago
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Q: How currency traders can buy large amounts of currency with little money?
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Leverage enables currency traders to do what?

Currency traders use leverage (or borrowed funds) to trade financial assets (currency). Leverage allows an individual to control larger trade sizes in order to gain a greater profit on their investment.


Which of the following best explains how currency traders can buy large amounts of currency with little money up front?

They buy on margin to provide leverage for a large purchase. They borrow money from their broker in order to make a larger currency purchase.


Leverage enables currency traders to which of the following?

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Currency traders buy on margin so they can do which of the following?

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What explains how buying on margin increase the leverage of currency traders?

borrowing money allows traders to make large purchases without a large amount of money up front.


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