Forex Trading With Leverage and Margin Explained: How to Manage Risks to Make a Profit

TopForex.Trade
2 min readJul 12, 2022

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Many people are drawn to Forex trading because of the amount of leverage that brokers offer.

Leverage permits traders to get more exposure in financial markets than they would otherwise be able to afford.

Leverage is very much the borrowing of a portion of the funds required to invest in something. Money is typically borrowed from a broker in the case of FX. Forex trading does provide significant leverage in the sense that a trader can build up — and control — a large amount of money for a little initial margin need.

The amount of money required to open a leveraged trade is known as the margin. When trading Forex on margin, you simply need to pay a proportion of the whole position value as a deposit.

In the new article, our team prepared an expert guide on how to trade with leverage and margin: terms definition, trading benefits, margin call concept and risk-management tips.

Learn how to trade on FX market with leverage and margin

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