Leverage Cuts Both Ways
Small money, big exposure
Leverage lets you control a big position with a small amount of cash. That multiplies your gains — and your losses — by the same amount. You have $1,000. Slide the leverage:
Leverage10×
$10,000
market exposure your $1,000 controls
If it moves +2%
If it moves −2%
Futures and forex hand you leverage by default. The danger: a move against you can wipe your cash — and a "margin call" forces you out at the worst moment.