I've heard about leverage in trading, but I'm not quite sure what leverage 1:100 specifically means. Could someone explain this concept to me in simple terms? I want to understand how it affects my trades and the potential risks involved.
5
answers
IncheonBeautyBloomingRadiance
Wed Dec 18 2024
This means that with the help of leverage, the investor can trade with an equivalent of 1,000,000 euros.
Claudio
Wed Dec 18 2024
Forex leverage is a financial tool that allows traders to borrow funds to increase the size of their transactions.
mia_harrison_painter
Wed Dec 18 2024
Leverage can be a powerful tool for traders, but it also comes with risks. It can magnify both profits and losses, so traders need to be cautious when using it.
InfinityRider
Wed Dec 18 2024
The ratio of borrowed funds to actual funds determines the level of leverage a trader can use.
BlockchainMastermind
Wed Dec 18 2024
For instance, if an investor has a trading principal of 10,000 euros and chooses a leverage ratio of 1:100, their trading capital is amplified by 100 times.