Buying on margin is almost a necessity in the Forex (Foreign Exchange market) because the standard transaction is $100,000 and known as a lot. Lots have to be that big on the Forex because of the sheer volume of money changing handsnearly $1.8 trillion dollars every day (and the market is open 24 hours per day, Sunday through Friday). This huge volume is a large draw for investors along with other advantages, such as:
Large volatility means great opportunity for profit
Large volume means market is liquid and easy to enter/exit a position
Ability to profit whether the market is rising or falling
Stops and other account instruments can limit risk while ensuring maximum profitability
Opportunity for commission free trades
Its simple: The greater the risk, or volatility, the greater the potential for profit. In truth, retail or smaller Forex investors could not even play on the Forex market until rather recently. Prior to that, only investment banks, hedge funds, and really big investors could even trade on the Forex. Without leveraging accounts (or trading on margin), there is no way that the average investor could afford to...