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 ...
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