Leverage is a twofold edged sword. In spite of the fact that it assists with amplifying a trader's benefits, it can likewise enhance a trader's losses. Henceforth, it is basic that traders completely comprehend the advantages and disadvantages of leverage before choosing the proper measure of leverage to utilize. The higher the leverage utilized, the littler the margin required to exchange one standard lot. A few brokers significantly offer leverage up to 500:1. This implies traders need just USD200 to control USD100,000 worth of currencies.