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Leverage in forex trading refers to the ability to control a larger position in the market with a relatively smaller amount of capital.
The more leverage you apply to your capital, the bigger the danger you will take.
IT HAS A ABILITY TO CONTROL A LARGE POSITION WITH A SMALL AMOUNT OF CAPITAL
Leverage is like a multiplier of your assets or ur capital in your position. Your profit varies based on your leverage so the higher the leverage, the larger the profit but what about the risk? the higher the leverage, the greater the risk of liquidating your position and losing your assets. (idea lang)
Leverage in forex trading involves borrowing capital from a broker to control a larger position, amplifying potential profits and losses for a trader.