The leverage available in FX markets is one of the highest that traders and investors can find anywhere. Leverage is a loan given to an investor by their broker. With this loan, investors are able to increase their trade size, which could translate to greater profitability. A word of caution, though: losses are also amplified.
For example, investors who have a $1,000 forex market account can trade $100,000 worth of currency with a margin of 1 percent. This is referred to as having a 100:1 leverage. Their profit or loss will be based on the $100,000 notional amount.
