Leverage plays a pivotal role in forex trading and can prove a very useful tool in cases where the exchange rates are not too volatile. If used effectively, leverage can propel the profits to be had to great heights, but the downside to this is that it can also maximize the losses to be incurred. Therefore, trading using leverage is best to be avoided by inexperienced, beginner traders and reserved to more seasoned users, who can better tame and understand the markets. If you do wish to use leverage as a beginner, make sure your broker provides a margin call, i.e. automatic closure of your trade if it is making losses beyond a pre-defined margin. This is the best way to mitigate dangers and risks, which are inherently associated with the use of leverage.