Recognize the risks. Buying and selling foreign currency is a fraught prospect, even for expert investors. Many investors use leverage, the practice of borrowing money to help them buy more currency. For example, if you wanted to trade $10,000 of currency, you would probably borrow at a leverage rate of 200:1. You could deposit as little as $100 into your margin account.However, if a trade goes sour, you may end up not only losing your own money but owing your broker a great deal more than you might on stock or futures trades.
