11 What Is Leverage - FXTM Learn Forex in 60 Seconds

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
ForexTime Ltd (www.forextime.com/eu) does not provide services to retail clients. Leverage in forex is like a “loan” that the broker gives the trader so that the trader has more capital to trade with than what he or she initially deposited. Watch the video for the full definition straight from FX Guru and FXTM Head of Education, Andreas Thalassinos.