While leverage can offer many benefits, it also comes with significant risks. The risks of leveraged trading include: 1. Magnified losses: Leverage can magnify losses as much as gains, and traders who use too much leverage or fail to manage risk effectively can lose their entire investment quickly. 2. Margin calls: If a trader's account balance falls below the required margin level, they may receive a margin call requiring them to deposit additional funds or close their position. 3. Volatility: Leverage can amplify the impact of market volatility, which can lead to significant losses in fast-moving markets. 4. Counterparty risk: Leveraged trading involves borrowing money from a broker or other financial institution, which carries the risk of default or bankruptcy. __________