thanks
But I don't understand this part.
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The reason you enter a contract, verses just buying gold at $820 and holding it until it goes up, is that with a contract, you don't have to put the entire $820 an ounce down. You put up what might be referred to as a deposit (a small percentage down). This allows you to take advantage of leverage, and frees up your trading cash for other investments.
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how about 'contract' in the above context in forex?
I don't understand the following statement
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the value of a 1 point move is $1 per contract traded.
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the trader recommended not leveraging more than 20 to 1
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5 mini forex contracts (50,000)
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I understand leverage. But what is the relationship between 20:1 leverage and 5 mini forex contracts?
what is 50,000?