What is leverage and How to calculate it?
when a trader invests in the financial markets, he mostly uses derivatives which benefit from leverage. Thanks to this leverage or leverage, the investor does not have to block all his capital to benefit from increases and decreases in the price of the underlying asset. To avoid disappointment, it is important to understand the leverage to choose the appropriate level before getting started. What is Leverage? Leverage makes it possible to multiply your exposure to a financial market by immobilizing only part of your capital. When making a leveraged investment, the amount needed to hold a position is called hedging. Trading with leverage is sometimes called margin trading.Leverage exists for many financial products, including spreads, CFDs, and Forex. When you invest in a leveraged pr...