Home / Glossary / Leverage

Leverage

Leverage is a loan provided by a broker to a trader on an exchange during margin trading. The purpose of leverage is to improve the cash flow in trades. By borrowing money from the broker, the trader can increase the amount of money available to trade. This can lead to increased profits if the trade is successful. However, it can also lead to increased losses if the trade goes against the trader.



27 Dec 2023

Share this glosssary
bannar