Leveraged forex

Leveraged foreign exchange is a high-risk investment. It means you can borrow money to invest in forex, the currency market.

With a leveraged forex contract, you invest in a currency "on margin", which means you only need to pay a certain amount - usually a small percentage of the contract amount, and you expect that the currency will rise or drop against another currency. Your profit or loss depends on the difference between the exchange rate when you open and close your contract.

Since leveraged forex is a type of margin trading, profits and losses can be magnified. It is not suited to inexperienced investors.

To learn more, see the following sections.