Leverage

Leverage is the multiplier, the X times the margin for which you can take a position. For example, if you have $10,000 in your account and have a 10 times leverage then you can take a $10,000 x 10 times = $100,000 value of the position.
Forex brokerage houses provide a varying amount of leverage in a range of 50:1 to as high as 300:1. Leverage allows you to make large gains with a small investment. However, losses are also amplified in case the trades go wrong.
Essentially, the higher the leverage, the higher is the level of risk involved. Brokerage houses have protective stops to prevent an account from going negative.

Re: Leverage

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Re: Leverage

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Re: Leverage

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Re: Leverage

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