Forex leverage understanding

[Lady B]

For a newbie what does leverage mean and how can I implement it in my trading

 

[markomarko]

Leverage is a tool used by traders that enables them to control a large amount of capital by putting down a much smaller amount. Unlike traditional investing, where you must tie up the full value of your position, with leveraged trading you only have to put up a smaller portion, known as margin. In the case of 50:1 leverage, for example, you can use $1 to control $50 of a position.