Leverage and Margin Explained

Leverage and margin are two of the most misunderstood terms in the trading lexicon and failure to understand either is a recipe for disaster. Used wisely leverage is a great asset and one which can help us grow a modest account into one which is significant, but only when it is understood and treated with the respect it deserves which is what this module will teach you.

It is a double-edged sword, able to magnify our stock trading and investing profits, but equally with the ability to magnify our losses exponentially, and it is not simply our account that is leveraged, many products and instruments are leveraged also, some inversely.

In this module, we explain both margin and leverage, the good, the not-so-good, and the pitfalls to be aware of in our desire to leverage our trading capital.