Question
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What are the basics of leverage?
2 Answers
<p>You can get yourself guided regarding it from this link: <a href="https://www.ig.com/en/risk-management/what-is-leverage">What is leverage?</a></p>
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<p>Leverage involves using borrowed money to increase your potential investment returns beyond what your own capital would allow. It works by using a small amount of your own money, called a margin, to control a much larger position in an asset. This magnifies both potential profits and potential losses, as your profit or loss is calculated on the full position size, not just your margin. </p>