Leverage
Borrowed capital that amplifies trading positions beyond your actual deposit.
Full Definition
Leverage allows traders to control larger positions with a smaller amount of capital. With 100:1 leverage, $1,000 can control a $100,000 position. While leverage amplifies potential profits, it equally magnifies losses. A 1% move against a 100:1 leveraged position could wipe out your entire investment. Proper risk management is essential when using leverage.