Leverage is the deployment of borrowed capital (debt) to fund an investment or project. As a result, the potential returns from a project are multiplied. They leverage their investments by utilizing a variety of instruments such as options, futures, and margin accounts. Leverage can be used by businesses to finance their assets.
In the context of forex trading, Leverage is the use of borrowed funds to improve the performance of a trade. It increases the purchasing power of the users, thus increasing the potential returns when trading is successful.
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