How Leverage Works in the Forex Market

Forex trading can be assisted by leverage. It is also called a dual-edged sword. Stanley Druckenmiller mentioned Soros’ lessons to him. “Soros has taught me that when you have great conviction about a trade you have to go for it. It takes courage to be an animal. It takes courage to ride a profit using huge leverage.” This statement is an excellent example of why leverage is a double-edged knife. Leverage has the potential to significantly increase or decrease your profits, but it can also make you feel abandoned not only psychologically but also financially.

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