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Leverage is a loan facility

Leverage is a loan facility provided by brokers to their traders so that small traders can have an equal chance to make a profit like big traders. However, high leverage means high risk. Nowadays many brokers offer the high leverage. Personally, I trade with a leverage of 1:100.
 
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Small leverage is the best for traders who want to make a decent profit. If a trader is using too much leverage, he is putting his account at great risk. Because using high leverage can cost the capital a lot. If traders follow the rules of risk management, they can be very successful in this market. Many brokers offers free educational courses regarding leverage.
 
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I also prefer to trade with a small leverage. This allows me to control the risks in transactions and not to risk my deposit too much. Stability in trading is important to me, and it is possible only when trading according to the rules of money management, and a small leverage gives this opportunity.
 

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