What is leverage? What is the use of leverage? When coming to capital market investing, generally, the people will think that they need huge capital to start. But while coming to forex market, it will be more accessible even for small investors due to use of leverage. Leverage, in simple terms, is borrowed funds. Think of you buying a home. The total cost of the home is $200,000. You are applying loan at bank. For that, they will ask some percentage as down payment, say 10%. You are now able to enter into ownership of a $200,000 worth home. So, you have bought at the leverage of 10 to 1. When you sell the home for $240,000, you make a profit of $40,000. The power of leverage will reflect in return. Now, come to forex market, which usually offers 1:100 leverage. Start your forex journey using the power of leverage.
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What Is Leverage? Use of Leverage? — Forex Market
August 22, 2018 at 13:42
by K. Prabhu
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