What is leverage?
Leverage allows a trader to control a larger position using a smaller amount of deposited capital.
Leverage can increase potential returns, but it also increases potential losses.
What is margin?
Margin is the amount of funds required to open and maintain a leveraged position.
Margin is not the same as the maximum amount a trader can lose.
Risk warning
High leverage can cause an account to lose money quickly. Traders should understand their broker's margin rules and use conservative position sizes.
Learning reminder
This lesson is for educational purposes. Always understand the risks before using real money in financial markets.