Forex offers the highest leverage compared to all existing financial instruments. The use of leverage in forex trading allows you to trade assets with a much greater value than the amount of capital you deposit.
Forex trading generally has a leverage of 100: 1, meaning you can trade a currency worth $ 500,000 by only using capital of $ 5,000. The use of leverage also makes the investor able to maximize the profit potential with existing capital, because the profit earned will always be multiplied by the value of the contract rather than the paid capital.
