What Is Leverage? | FXTM Learn Forex in 60 Seconds

Leverage in forex is like a “loan” that the broker gives the trader so that the trader has more capital to trade with than what he or she initially deposited. Watch the video for the full definition straight from FX Guru and FXTM Head of Education, Andreas Thalassinos.

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Disclaimer: The content in this video comprises personal opinions and ideas and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.

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5 thoughts on “What Is Leverage? | FXTM Learn Forex in 60 Seconds

  1. If someone use 1:10 ratio of leverage and his own capital 1000 usd.for example,he buys a pair of any currency lot 0.10 Price of 0.10 lot is 10,000 his capital is 1000usd rest of money provides the broker as leverage option . At the end of the day,he has to pay interest on 9000 which he got from the broker as leverage or not .

  2. You said leverage is a loan , but usually the loan must be repaid and this so called leverage can't use as you want so what is your aim?

  3. 전문직 내지 업이없는 사람이 가지는 내적 상실은 안가져본사람은 모른다 이로 나는 어떤것도 이해하게 되었다! 사는 기본권에도 못들어가는 이런 패단은 다시는 없어야한다 그러나 사실은 하나님이
    다주신것인데도 찾지못하고 다른쪽에서 헤맨것이다! 이것도 개인과 가문이 속은 것이다! 하나님은 그 잃어버린것을 보상해주시고 원하는만큼 회복시켜주시리라 믿는다!

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