Leverage lets a small amount of margin control a much larger position, expressed as a ratio such as 1:30 or 1:100. At 1:30, one hundred dollars of margin can support roughly three thousand dollars of currency. Leverage does not change how far a price move is in pips, but it multiplies both the gain and the loss on the same balance, so the risk of ruin rises with it.
Forex glossary
Leverage
Related term
Margin
Margin is the portion of your balance that the broker sets aside as a deposit while a leveraged position is open. It is not a fee and not a minimum account size…
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