What do leverage and margin mean?

The term ‘Leverage’ in Forex and CFD trading symbolizes being able to trade larger volumes with less investment. To let you control a larger position than your investment, brokers set aside a certain amount as 'collateral'. The leverage is expressed in ratios, such as 30:1 or 5:1. Please keep in mind that the leverage amplifies the price movement. This means proportionally higher profit or loss, depending on the market movement. Therefore, trading CFDs carries a high risk. Before starting a live trading account, please ensure you understand how CFDs work. You can create a demo account and test your investment strategies before you put your foot on the pitch.