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Leverage is a loan facility

Leverage is a loan facility provided by brokers to their traders so that small traders can have an equal chance to make a profit like big traders. However, high leverage means high risk. Nowadays many brokers offer the high leverage. Personally, I trade with a leverage of 1:100.
 
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Small leverage is the best for traders who want to make a decent profit. If a trader is using too much leverage, he is putting his account at great risk. Because using high leverage can cost the capital a lot. If traders follow the rules of risk management, they can be very successful in this market. Many brokers offers free educational courses regarding leverage.
 
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