What is leverage? Let's get to know each other.

in various trading circles Whether trading Forex, oil, gold prices, indices, Bitcoin or any other asset. Especially in Forex trading, you will probably encounter this word that is Leverage. Some people may know what Leverage is, but for those who are stepping into a new industry. would have been a little confused when he heard it. So let's get to know Leverage together better.

Leverage is used as a financial tool that can give users of this tool an increase in their existing financial power and power. simple comparison 𝘛𝘩𝘦 𝘧𝘦𝘸 𝘯𝘰𝘵𝘦𝘴 𝘐 𝘩𝘢𝘷𝘦 𝘢𝘳𝘦 𝘱𝘳𝘪𝘮𝘢𝘳𝘪𝘭𝘺 𝘥𝘦𝘤𝘰𝘳𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭𝘪𝘻𝘢𝘵𝘪𝘰𝘯 𝘣𝘢𝘴𝘦𝘥- 𝘵𝘩𝘢𝘵𝘴 𝘲𝘶𝘪𝘵𝘦 𝘢 𝘤𝘰𝘮𝘱𝘭𝘪𝘮𝘦𝘯𝘵 𝘧𝘳𝘰𝘮 𝘴𝘰𝘮𝘦𝘰𝘯𝘦 𝘸𝘩𝘰𝘴 𝘢𝘴 𝘖𝘊𝘋 𝘳𝘪𝘥𝘥𝘦𝘯 𝘢𝘴 𝘐!

For example, we have an investment of 300,000 baht. But when leveraged, we will have an additional one million baht. But everything itself always has 2 sides: in the case that it is used in the right way, the result is a large profit. If the next case is used in the wrong way, it will lose quite a lot. Therefore, for new traders, it is important to study the information carefully for careful consideration.

The main reason leverage is used is due to the low profit margins in foreign exchange because spreads are not that high and one has to rely on leverage for increased profits. But in order to be able to use it, the amount of margin required by the broker must be completed before being able to use the tool.

Investment proportions and currency pairs that beginners should know

- Euro and US Dollar

- Pound Sterling and United States Dollar

- US Dollar and Japanese Yen

- US dollar and Swiss franc

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