Leverage

Leverage — kind of loan amount which is provided by the broker to the trader to make transactions. Expressed by attitude of the deposit of trader to trading volumes. For example, if leverage is 1:100 a trader can invest in an asset 100 times more than the amount of the deposit. In the case of loss the broker allows capital losses only to the extent of the deposit — once the deposit is cleared due to the loss, the position is closed by the broker.

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