Leverage in Forex: Calculation Formula + Use in Scalping & Swing Strategies

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

Leverage in the Forex market allows traders to open larger positions using a small portion of their own capital, thereby increasing their potential profit margin. However, using leverage also introduces significant risks.

In essence, leverage refers to a type of borrowed credit that traders can use to increase their purchasing power and Profit from small market fluctuations.