Capital

Optimum Capital Structure in Forex Trading – A Guide

5 min read

An optimum capital structure for Forex trading is one which minimizes the cost of capital and maximizes returns from investing. Achieving this desired balance requires careful consideration and strategy to ensure the right combination of debt, equity and other forms of external financing is used. Key considerations when developing an optimum capital structure include maximizing returns on invested capital, determining the appropriate debt/equity ratio, minimizing the cost of capital, minimizing risk to investors and creditors, and protecting against external shocks. Through the judicious use of these strategies, Forex traders can achieve an optimum capital structure that serves to maximize returns while controlling risk.