The possibility of making profit is inextricably interwoven with the risk of losses. Initiation of transactions with non-deliverable OTC financial instruments has a high degree of risk and can lead to losses up to the whole loss of deposited margin. Risks warning

✖
  1. Main
  2. Education
  3. Forex Dictionary
  4. Leverage

Leverage

Leverage is borrowing money to increase the profit from transactions. The use of leverage allows a client to close expensive positions with borrowed money and enter new levels of the transaction. When Investment over the leverage, the client gets increased opportunities for profitable closing of the transaction, but the losses will be proportional to the funds received.

Leverage on Forex is the use of the broker’s funds in the interests of the client, which allows him to open expensive investment transactions. To use finance, you must have a minimum balance on your account. With zero or negative balance, this option is not available.

Each company has limits. The loan is indicated in proportion, for example, 100:1. This proportion means that the client gets the opportunity to make transactions amounting to 100 times the amount of money on the account. The maximum size available for transactions is displayed. Before using the tool, you need to familiarize yourself with how the system works and what operations are promising.