Leverage in Forex

What is leverage?
If you are new to Forex, you probably ask yourself this question.
Leverage is not always easy to understand for beginners.
This is the first thing I tried to understand when I started forex.

The leverage is offered by your broker (broker), and allows you to trade on larger lots without investing a lot of money.
With the leverage with $ 100 you can trade up to $ 40,000.
On the forex market changes are minute and without the leverage, we should invest astronomical sums to expect to generate a minimum profit.

How does it work?
The principle is actually very simple.
The Brokers offer several types of leverage to 400X.

example:
If I invest $ 100 with a lever 100X I can open a position for $ 10,000.

$ 100 * 100 = $ 10,000

Similarly if I invested $ 25 with a lever 400X I can open a position for $ 10,000.

$ 25 * 400 = $ 10,000
And a lever for 100X, when you invest $ 1, your broker invests in $ 100.
Leverage makes it possible to easily generate more profits, but more attention tothe leverage, the greater risk taking is high.

For more information on leverage:
Lien 1
Lien 2