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How Does Leverage Profit a Forex Investor?

One way of thinking about leverage is that it is a giant magnifying glass -- without leverage, your wins and your losses would be much lower.

If you make a 20% return on $1000, it is much smaller than a 20% return on $100,000. The fractional currencies you deal in mean that you have to have a large amount of money in the game in order to realize a substantial profit.

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