Leverage is borrowing money to increase the profit from transactions. The use of leverage allows a trader to close expensive positions with borrowed money and enter new levels of the transaction. When trading over the leverage, the trader 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 trader, 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.