Mdraghib
Member
Leverage in trading means you can control a large position with a small amount of your own money. It's like borrowing money from your broker to increase your buying power. For example, with 1:100 leverage, you can trade $10,000 while only having $100 in your account.
It sounds great because even small price movements can give you bigger profits. But here’s the catch — it works both ways. If the market moves against you, your losses are also multiplied. This means you could lose your entire investment very quickly.
That’s why leverage is risky. It can boost your profits, but it can just as easily wipe out your account if you’re not careful.
It sounds great because even small price movements can give you bigger profits. But here’s the catch — it works both ways. If the market moves against you, your losses are also multiplied. This means you could lose your entire investment very quickly.
That’s why leverage is risky. It can boost your profits, but it can just as easily wipe out your account if you’re not careful.
