To make future profits higher, companies and consumers employ leverage to borrow money and expand projects. Leverage is the technique of using debt to finance assets. Several companies and consumers use the technique. Investors may use options, margin, or future accounts to achieve their goals using leverage trades. Companies use debt financing to expand their businesses and boost their stock prices by investing in major operations. Leverage is the proportion between the amount invested and the amount of money that may be traded after taking on debt. If the trade is significant, a person will lose a great amount of the borrowed money.

forex leverage and margin explained