What is foreign exchange leverage

Trading is the use of small amounts of money for many times the original amount in the hope of earning a multiple of the volatility of the investment in the object, or loss.

Leverage trading is also known as virtual plate trading, deposit trading.

The investor uses a small amount of his own capital as security, which is called margin. The leverage provided by the bank or broker magnifies the investor’s own trading capital, in order to get a higher investment return.

So leverage, in essence, is borrowing money to boost investment returns.

The amount of leverage is typically determined by a bank or broker, and the greater the leverage, the less of the investor’s own capital is required to pay, and the correspondingly higher the risk.