what is leverage in forex

Leverage is a trading technique that allows a trader to take on a greater risk in order to achieve a greater return

By using leverage, a trader can multiply their investment in a trade by a factor of two or more

This can provide a significant boost to profits, provided the trade goes in the trader’s favor

Leverage can also be a risky proposition, as it can amplify losses if the trade goes against the trader

For this reason, it is important to carefully weigh the pros and cons of using leverage before taking any trade

Leverage is most commonly used in forex trading, where it can provide a significant boost to profits

In forex trading, leverage allows a trader to take on a greater risk in order to achieve a greater return