Leverage

Leverage in trading refers to the ability to control a larger position in the market with a relatively smaller capital. It is typically expressed as a ratio, such as 1:10 or 1:100, meaning that for every $1 of your own money, you can trade with $10 or $100, respectively. Leverage is commonly offered by brokers, especially in Forex and CFD trading, to allow traders to amplify their potential gains. It is important to keep in mind that leverage can also amplify losses.

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