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What is Leverage - Definition | Forex Dictionary

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Full Trader
(@fulltrader)
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Joined: 2 year aug
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Leverage lets you control a position much larger than the capital you deposit. A leverage of 1:100 means that with 100 dollars you can move a 10,000 dollar position. It is a tool that amplifies both profits and losses.

Why it matters: although it allows trading with little capital, high leverage is the most common reason beginners lose their account. Use it with caution and always together with a stop loss.



   
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