What does leverage mean?
Leverage, also called leverage or leverage effect, allows you to trade with more money than you have. In forex trading, traders can “borrow” capital from a forex broker and thus trade much larger positions than the actual size of their trading account would allow. The leverage effect, also known as the leverage effect, describes the result of using equity capital in relation to borrowed capital. This means that with a relatively small input of own funds, a better result should be achieved by adding borrowed money. However, this also means that they can make much larger losses.
For example, a leverage of 1:25 means that for every EUR in your account, you can trade EUR 25 worth.