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Leverage allows traders to control a position whose total value exceeds the funds committed to opening it. It is commonly expressed as a ratio, but the permitted level depends on the instrument and account conditions. Our explanation at https://roboforex.com/help/faq/trading-vocabulary/what-is-leverage/ introduces the concept and explains why it matters when assessing market exposure. Although leverage can reduce the initial margin required for a position, it also makes price movements more significant relative to the funds invested. Before choosing a leverage level, traders should consider their experience, the size of the position, and the potential consequences of an adverse market move.
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