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Leverage is the use of borrowed capital in order to control an investment that its larger in value than the amount of available capital. In CFD trading, leverage is interest free, so it is not regarded as a typical loan. Leverage is normally presented as a ratio, for instance using leverage of 1:10 allows you to invest in a position that is worth ten times the value of your available capital. While the use of leverage can amplify your gains, it can also have the same effect on your losses should your trade move against you.


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