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What is leverage?

The term ‘Leverage’ in Forex and CFD trading is being able to trade a larger amount of volume 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. Please make sure that you understand how CFDs work before starting a live trading account. 

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Disclosure and Terms of Business for further details.