Lesson 1, Topic 3
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LEVERAGE and MARGIN

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Leverage-  Is when the broker gives you (x) amount of leverage times your Balance. Lets say you open a trading account with $100USD your broker give you1:500 leverage. That means for every $1 you have in the account you have 500 leverage, meaning you can make more money but also lose money faster as well. This means the broker is allowing you to open POSITIONS larger than what you have available in your account.

1:100=  1.00 Per $1000
1:200=  1.00 Per $500
1:500=  1.00 Per $200
1:1000=  1.00 Per $100