Leverage is the ability to trade as if you have more capital than you
actually have.
Leverage gives you the power to control positions in the market that are
much greater than your current capital position. You can also think of
leverage like a large ship. The ship, in its entirety, is very large, yet the
direction that it moves is controlled by a relatively tiny wheel.
The small wheel controls the direction and destination of the larger
ship.
Your capital controls the direction and destination of the larger market
position.
actually have.
Leverage gives you the power to control positions in the market that are
much greater than your current capital position. You can also think of
leverage like a large ship. The ship, in its entirety, is very large, yet the
direction that it moves is controlled by a relatively tiny wheel.
The small wheel controls the direction and destination of the larger
ship.
Your capital controls the direction and destination of the larger market
position.
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