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What is leverage?
The leverage is a ratio between the trader’s own funds and borrowed funds, which a trader borrows from his broker. 1:100 leverage means that for a transaction you must have a trading account with amount 100 times less than the sum of the transaction.
Example: a trader chooses the 1:500 leverage and has 200 euros on his account. Leverage 1:500 allows him to buy a contract worth 100.000 euros.