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What is leverage?

Updated over 3 months ago

What is leverage and how does it work?
Leverage allows traders to control a larger market position with a smaller initial investment. When setting up a trading account, it’s important to choose leverage that matches your trading style and comfort level with risk.


Key points to consider when using leverage:

  • Higher leverage can increase your potential profits, but also raises the risk of significant losses.

  • Lower leverage reduces risk exposure, but also limits your profit potential.


Is it possible to trade without leverage?
Trading without leverage is not an option, as leverage is a standard feature of the trading setup at Paramount Capital Fx.


Important note:
Paramount Capital Fx does not provide financial advice regarding which leverage level to choose. We recommend conducting your own research and selecting the leverage that best fits your trading strategy and risk management plan.

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