“Trading forex, derivatives and leveraged products carries a high level of risk, including the risk of losing substantially more than your initial investment. You should ensure that you fully understand the risks involved and seek independent advice if necessary before you start trading.”

Know More About Leverage On Forex

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 Know More About Leverage On Forex


Leverage is a loan from a broker that is given to traders, So that the trader's funds have greater purchasing power. The leverage is written in a ratio, for example ;
1:1
1:50
1:100
1:300
1:500
and more...
If your funds are $ 100 and use 1:100 leverage then that $ 100 has 100 times the power equivalent to $ 10,000. other example , If your funds are $ 500 and use 1:100 leverage then that $ 500 has 100 times the power equivalent to $ 50,000

So why need leverage? Because in forex trading, The amount of the transaction is measured in lot units where 1 lot is worth $ 100,000, So when you want to transact as much as 1 lot, you don't need to provide as much as $ 100,000, but only a percentage according to the leverage used.

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