Hi, I a new to FOREX.
I understand that most of the Forex brokers give 100:1 leverage.
My question:-
From where the broker will get the trade 100 leverage ?
- The broker hedges from other clients' accounts ?
- Or the broker hedges from external finicial instute?
- Or the broker make a short-term loan from whomever?
I am really want to undersatnd what is mechanism, the broker uses to get that leverage for all the clients?
Thanks
I understand that most of the Forex brokers give 100:1 leverage.
My question:-
From where the broker will get the trade 100 leverage ?
- The broker hedges from other clients' accounts ?
- Or the broker hedges from external finicial instute?
- Or the broker make a short-term loan from whomever?
I am really want to undersatnd what is mechanism, the broker uses to get that leverage for all the clients?
Thanks