Margin and leverage are among the most important concepts to understand when trading forex. These essential tools allow forex traders to control trading positions that are substantially greater in size than would be the case without the use of these tools. At the most fundamental level, margin is the amount of money in a trader's account that is required as a deposit in order to open and ... The use of leverage is arguably the most important aspect of risk management and proper risk management is the top priority of all professional traders, but what is the best leverage in Forex trading? If you are completely new to leverage in Forex we recommend you trade on a Demo account first. Today the best leverage in Forex is no more than 30:1. Leverage could be as high as 1:1,000 in Forex trading and while this may sound a bit too extreme for novices, there is a good reason why Forex is typically associated with high leverage ratios. In the foreign exchange market, exchange rate movements are measured in pips (“percentage in point”) – a unit of change that is just a fraction of ... Leverage refers to the facility provided by forex brokers to allow you to trade with more money than what’s actually in your account. It’s like a loan, and you are required to put up a deposit of your own funds to secure it. Forex leverage is when a broker provides you with more capital to trade with than what you deposited. This increases your "buying power" and allows you to make trades using this larger amount of ...