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HomeRight Arrow TerminologyRight Arrow Leverage

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Leverage

Leverage allows you to open a bigger position using a fraction of your capital while borrowing the rest from the broker. Leverage is typically based on the broker’s margin requirement and is often represented as a ratio.

While leverage allows you to trade a larger position with a smaller capital, it can be a double-edged sword – increasing not just the potential for larger gains, but also the potential for larger losses.

Read more about leverage in forex here.

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