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Trading glossary

What is Leverage?

Risk ManagementIntermediate

Leverage means using borrowed money to increase the size of your trades. 10:1 leverage means you control £10,000 with just £1,000 of your own money. While leverage amplifies profits, it equally amplifies losses — it's the fastest way to blow a trading account.

Related terms: Margin Call Margin CFD Spread Bet

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