With more than $5 trillion of regular currency exchanges, the Forex industry is undoubtedly the largest market in the world. Forex trading includes buying and selling currency exchange rates with a specific goal of favoring the trader.
When some borrowed money, commonly known as capital, is invested in a stock, currency, or security, it is called leverage. Leverage is quite common in Forex trading, as investors are capable of trading more significant positions in a currency. Here, investors usually borrow money from a broker and then trade enormous currency positions.
While leverage is regarded as a double-edged sword, there are probabilities of magnifying losses. Remember, Forex traders can mitigate forex losses by managing leverage and employing risk management strategies.
Skim through to get valuable insights regarding the types of asset leverage and other features of leverage. This article also consists of the steps to change leverage in a Forex account.