What Is Leverage And How It Can Work For or Against Traders? ⚠️Trading is risky, only trade what you can afford to lose Start trading with FBS Markets If you’ve ever dipped your toes into the world of trading—especially Forex—you’ve probably heard the term leverage tossed around like it’s some magical cheat code. But let’s be real: leverage is powerful, but it’s no free lunch. It can make you or break you. So what exactly is leverage, and how can it supercharge (or tank) your trading results? Let’s dive in. What Is Leverage? Leverage is essentially borrowing capital to increase your position size in a trade. Instead of using only your own money, you're using a combination of your funds and borrowed funds from your broker. It’s like using a lever to lift a heavier weight than you normally could—hence the name. For example: If you're trading with 10:1 leverage, you can control $10,000 worth of currency with just $1,000 of your own money. Pretty cool, right? But also kinda ...
What Next Post Fed Rate Held On Wednesday Open a trading account with FBS Markets Markets exhaled in unison Wednesday as the Federal Reserve concluded its latest policy meeting with a collective “no change” to interest rates. After weeks of speculation, jawboning from Fed officials, and eye-watering CPI numbers, the Fed chose to keep its benchmark interest rate parked at 4.25%–4.5%, for the third straight time. And just like that—the financial world got a moment to breathe. Why It Matters Let’s be honest: the Fed hasn’t exactly been a source of chill lately. Traders, investors, and analysts have all been playing Fed-whisperer, trying to predict what comes next. But this time, Jerome Powell and the crew opted for a steady hand. This rate hold signals two major things: 1. The Fed sees progress on inflation, but not enough to relax fully. 2. They’re buying time. Waiting for more economic data to shape the path forward, instead of front-running inflation or growth concerns. The ...