Leverage allows a forex account to control positions larger than the cash balance. This makes leverage powerful and dangerous at the same time.

IMAGE PLACEHOLDERForex Leverage and Risk
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More Exposure, Faster Movement

Higher leverage means smaller market moves can create larger percentage changes in account equity.

Leverage and Drawdown

Strategies using high leverage can reach loss limits more quickly, especially when several correlated positions are open.

Ask How Leverage Is Used

When reviewing managed forex accounts, ask about typical and maximum leverage rather than relying only on the broker’s maximum available leverage.