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The use of high leverage in Forex PDF Print E-mail

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By offering high leverage, the market maker encourages traders to trade extremely large positions. This increases the trading volume cleared by the market maker and increases his profits, but increases the risk that the trader will receive a margin call. 

While professional currency dealers (banks, hedge funds) never use more than 10:1 leverage, retail clients are offered leverage up to 400:1. Retail FXs will do anything to get the customer's money deposited with them, since eventually all this money becomes theirs.
 
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