What is leverage in forex ?

[Muayad 125]

Leverage is the means of gaining exposure to large amounts of currency without having to pay the full value of your trade upfront. Instead, you put down a small deposit, known as margin. When you close a leveraged position, your profit or loss is based on the full size of the trade.

 

While that does magnify your profits, it also brings the risk of amplified losses – including losses that can exceed your margin . Leveraged trading therefore makes it extremely important to learn how to manage your risk.

[Mirandum 77]

On 10/3/2020 at 4:01 AM, Muayad said:

Leverage is the means of gaining exposure to large amounts of currency without having to pay the full value of your trade upfront. Instead, you put down a small deposit, known as margin. When you close a leveraged position, your profit or loss is based on the full size of the trade.

 

While that does magnify your profits, it also brings the risk of amplified losses – including losses that can exceed your margin . Leveraged trading therefore makes it extremely important to learn how to manage your risk.

I think it's a way of supporting people with less capital to trade with a very large capital. but the problem like you said is that " as it magnify your profits, it also brings the risk of amplified losses.

 

You know before I got to know this I invested so much money in trading, and I was making it but I decided to leverage on my broker I was using binance. Just a little downward movement in the market I lost all my cash, it was a sad experience for me.

[Yeroth 90]

Trading with financial leverage means trading with more Capital than is actually available In Your Wallet In order to carry out this type of trading, the broker
 I would grant you an operator or a temporary loan that allows you to operate more easily in the broker of your choice ...

[Essaouira20 210]

I prefer go with a leverage of 10x .

[Amr90 1064]

Leverage is a double-edged sword. As the deal size is magnified, the profit or loss increases.
Therefore, one of the most important things that must be learned at the beginning of trading is capital management and then risk management.

[joemcgwa 3227]

Leverage is the best thing that used in the forex and it is recommended in order to get high profit, that's leverage is multiplying your capital from 10 times up to 1000 times, for example if you have $10 for leverage of 1000 times, thats means youll be trade with $10000.

[Ameralsamt 2558]

Forex leverage is the ratio of the trader's funds to the size of the broker's balance. In other words, leverage is a borrowed capital to increase potential returns. The size of forex leverage usually exceeds the invested capital several times.

[maarcoferrer 1096]

Leverage in Forex is something that as well as it can benefit us, it can also affect us. There are some brokers that give 1:50 or 1:100 or 1:500 and so on. But the decision is still up to you as to how you want to go per trade. Getting the right information you will be able to know how you should go with respect to the money you have in your trading account, Forex can get enough benefits if you learn a good trading system also adding risk management.

[Ayesha990 0]

The forex market is the largest in the world with more than $5 trillion worth of currency exchanges occurring daily. Forex trading involves buying and selling the exchange rates of currencies with the goal that the rate will move in the trader’s favor. Forex currency rates are quoted or shown as bid and ask prices with the broker. If an investor wants to go long or buy a currency, they would be quoted the ask price, and when they want to sell the currency, they would be quoted the bid price. Leverage in forex is very important due to this we can get more benefit.

[Adrian Atiencio 156]

Hi, I hope you are feeling great. Leverage in trading is the most feasible way to help people who have little capital in their investment accounts since leverage can help you triple your investment, but you must keep in mind that as well as you can win a lot you can also lose if you do not manage your capital well.

[Mishakhan123 51]

Leverage involves borrowing a certain amount of the money needed to invest in something, in the case of Forex money is usually borrowing from a broker, Forex trading does offer high leverage in the sense that for an initial margin requirement.....

[Emanec 17]

Leverage in forex is the special loan that the trader got from the brokerbin order to increase the profit rate because the forex market is not high volatile like Crypto that's why it using leverage although leverage is whats making forex to be risk.

[Crpto❤️ 55]

Then it will be good to those who want to start with low capital and want to learn more about crypto but due to fear they cannot join trading in crypto. And I think this will be good for those who have lesser capital and want to lose there fear. So this is a good and useful post for the forum members and thank you for the useful post.

[RoyalHouse01 9]

But this makes the trade more risky as you can lose all of your money or capital very fast if you do it so I want you to play safe with your money.

[Abrar1122 10]

I got the point that the leverage is something which increases your profit from the low investment or small capital but it also increases the losing rate

[selfmade 7]

With the high unpredictable behavior of cryptocurrency market and the high risk presented by margin trading, then it is even more risk to have margin trading in cryptocurrencies I guess.

[selfmade 7]

On 2/4/2021 at 11:49 AM, Emanec said:

Leverage in forex is the special loan that the trader got from the brokerbin order to increase the profit rate because the forex market is not high volatile like Crypto that's why it using leverage although leverage is whats making forex to be risk.

I'm confused about that loan, is it not a risk to a broker, I mean what if a trader losses would int a broker inquire losses?