What is a leverage, and how does it impact Forex trading?
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Leverage allows you to trade larger positions with a smaller initial investment. This means that, if the market moves in your favor, you can earn a greater profit than if you were trading without leverage.
Leverage in Forex trading refers to the use of borrowed capital to increase the potential return on an investment. It allows traders to control a larger position in the market with a smaller amount of their own money, known as the margin. Leverage is expressed as a ratio, such as 1:50, 1:100, or 1:500, which indicates how much a trader can trade compared to their deposited funds.