Leverage is essentially the amount used in a trade compared with the security deposit needed by the broker, for that trade. Forex offers the most leverage of any form of investing, which for most brokers, is 100:1, so if you put in $1000, the broker will make that $100 000 when you are trading.

So by investing $1000, you are able to control $100 000 worth of currency on the market. This is what allows traders to pull in such impressive incomes and is also the downfall of less experienced traders if you don