Is leverage important?

Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, that money is usually borrowed from a broker. Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up and control a huge amount of money. I have the flexible high leverage like 1:400 from Trade12 broker through which I can exceed my initial capital.

Among many important factors that are considered in case of selecting a broker, leverage is one. Leverage is the amount of money a trader can borrow from his broker against his margin in his trading account. As a micro investor I want high leverage and that’s why I am working with AAFX as it is providing me high leverage of 1:2000. I can borrow $2000 against $1 margin in my trading account.

Leverage is an important factor of trading and we should consider and check leverage which broker offers to his client to trade. Leverage is merely a tool. If you know how to use it wisely, then it can be useful. If you don't, then you'll hurt yourself.

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