Being a trader is a great profession. It allows a person to make the substantial income from online trading from nearly any place in the world. And the only things that are needed are the laptop (or even a smartphone) and the Internet connection. Well, we are certainly exaggerating here. One has to have the nerves of steel, fast reaction, some great experience in various markets, advanced knowledge, and quite some analytical skills to be successful in the FX and CFDs markets. However, the returns are attractive too.
Leverage is a novel idea that has made the Forex market very attractive to individual traders, which is why so many of us are getting into the industry. Leverage in Forex trading can go as high as 1000:1, which means you can control 1000 times the value of a trade compared to the margin you put up. On its face, it sounds like a great offer, make a $100,000 worth trade with only $100! Until you consider the flipside.
There has been a wave of regulation reform across Europe targeting the Forex, CFD and binary options markets. Germany has not been left behind in the wave, and they too have repealed the regulations governing leveraged CFD products. These include Forex pairs, commodities and even stocks.