Leverage and Margin for beginners

[sahara]

Leverage allows traders to control larger positions with a smaller amount of capital. It is a double-edged sword, as while it can amplify profits, it also increases potential losses. Margin refers to the portion of the capital required to open and maintain a leveraged position. Proper risk management is crucial when using leverage to protect your trading account.

 

[Fin_Trader]

I think a trader should always control risks and always keep his deposit safe. Therefore, it is better to trade with a small leverage and earn a conservative percentage of profit, but do it steadily, than to trade without risk control with maximum leverage with the goal of earning a lot and quickly, but have a high chance of losing your deposit quickly.