Leverage is the term used when using borrowed capital, such as margin, to increase the potential return of an investment.

Leverage is often used to significantly increase your purchasing power and it allows you to open large deals with a relatively small investment. iFOREX provides leverage of up to 400:1. This means that with a deposit of $500, you can start trading with up to $200,000.

Note: While leverage increases your investment potential, it also increases risk and hence requires sufficient training.