This post is about What is Leverage in Forex Trading? And What it’s Advantages and Disadvantages? Forex Leverage means the multiplication of you capital amount i.e. you deposit $1000, and you chose leverage 1:500 means 1,000 x 500 = $500,000 so now you have total $500,000 margin to trade in forex. In Forex makes it possible for a trader to buy and sell without giving up the 100% amount of money. But a margin amount it takes. For instance, 50:1 forex leverage, generally known as 2% margin necessity, usually means $2k of capital is needed to buy an order of price of $100k. 400:1 leverage usually means $250 is needed to buy an order of price of $100k. Leverage will increase both of them upside as well as a downside to risk since the trading account has become much more delicate to market rate changes.
Advantages & Disadvantages of Forex Leverage
Advantages:
![](https://www.fxforever.com/wp-content/uploads/2016/12/forexleverage-1024x576.png)
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