I have lately been reading up on what Forex Trading is and how it works. In many sources, it is described that a consistent investor can generate 15%
return annually.
My question is, what is this return based on? Is it based on your margin or is it based on your total position (which includes leverage).
Lets say you have a margin of $1000
and your broker provides you with a leverage of 100:1
, so you have a position of $100,000
.
Now is your return 15%
of $1000 = $150
or is it 15%
of $100,000 = $15,000
?