Lesson 2 II What is The Levreage ?
Leverage is a tool provided to you by the forex company or your trading company, and this tool inflates your capital so that you can deal in the forex market
In other words, if the leverage is 1:10, then every $1 in your account equals $10 in buying value in the forex market.
And if the leverage is 1:500, that means that every $1 in your account equals $500 purchasing power in the forex market.
Therefore, you can start in the forex market with a small capital, starting from $50, with a leverage of 1:500, which gives you purchasing power as if your capital is equal to $25,000.
In other words, if the leverage is 1:10, then every $1 in your account equals $10 in buying value in the forex market.
And if the leverage is 1:500, that means that every $1 in your account equals $500 purchasing power in the forex market.
Therefore, you can start in the forex market with a small capital, starting from $50, with a leverage of 1:500, which gives you purchasing power as if your capital is equal to $25,000.
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