Leverage in Forex trading allows traders to control larger positions with a smaller amount of capital. While leverage can amplify profits, it also increases risk. Higher leverage means smaller price movements can result in larger losses. It's important to manage risk by using stop-loss orders and limiting the amount of leverage used. Traders should also have a solid understanding of the market and their strategy before using leverage. It's recommended to only use leverage with funds that can be afforded to lose.
