Leverage allows traders to trade with far more capital than they would have on their wallets. Let’s imagine you possess $10000 within your brokerage account and a 500:1 leverage. It suggests that you can exchange large amounts of money. Leverage allows you to generate money and expand your account quickly, but it also has the potential to ruin your account quickly. Only use the leverage that one’s trading system and plan allow. Leverage is lethal.