Leverage is another consideration

[Tobi]

Leverage is another consideration. In the United States, investors generally have access to 2:1 leverage for stocks. The forex market offers a substantially higher leverage of up to 50:1, and in parts of the world even higher leverage is available. Is all this leverage a good thing? Not necessarily. While it certainly provides the springboard to build equity with a very small investment - forex accounts can be opened with as little as $100 - leverage can just as easily destroy a trading account.

 

[Suba]

For professionals who can analyze well, leverage is an advantage in gaining significant exposure, thus increasing profit levels according to the leverage. However, if you are a beginner, it is better to use small leverage to avoid the risk of loss.