Currency traders can use leverage to do which of the following?

A. Entice unwilling currency holders to sell below market price.

B. Influence the exchange rate with small currency purchases.

O O O O

C. Buy large amounts of a currency with little money up front.

D. Force foreign governments to give them discounted exchanges.

Question

History

Yaka

23 May, 16:41

Currency traders can use leverage to do which of the following?

A. Entice unwilling currency holders to sell below market price.

B. Influence the exchange rate with small currency purchases.

O O O O

C. Buy large amounts of a currency with little money up front.

D. Force foreign governments to give them discounted exchanges.

+5

Answers (1)

Know the Answer?

Cassidy Kirk · Answer 1

Option C, buy large amounts of a currency with little money up front, is the right answer.

Explanation:

The term Leverage is referred to as the borrowing of a certain amount for the purpose of investing in something. In Forex, the money is generally borrowed from a broker.

High leverage is provided by Forex trading in the way that for an initial margin requirement. This also applies that the leverage of margin is equivalent to maximum real leverage.