What is leverage?
Leverage is a strategy in which an investor can multiply his/her buying power to invest in certain derivative financial products by opening a position with a larger exposure to the market with a smaller amount of invested capital.
Leverage increases the potential return of an investment but it can also be very risky because it can magnify losses.
See also:
- How does leverage work?
- When can I leverage my trade?
- How do I set to leverage on a trade?
- What is the maximum leverage per instrument?
- Can I increase the leverage of my trades over the maximum limit?
- Why is leverage risky?
- Can I change the leverage in an open position?
- Is it possible to leverage my stocks?
- Why can't I see the profits on my leverage trade?
- Why can't I use leverage?
