Sorry for the sheer ignorance of these questions but i just cant seem to get my head round leverage and how it works, I understand that its a way of 'borrowing' money so you can trade with more money than your actually capital, but...
1) Is it then possible to nearly/completely wipe my account with one bad trade or on the other extreme, make a complete killing on one good trade?
2) Do you have to use leverage? Is it needed to be profitable in the long term?
Could someone explain it please I just cant seem to get my head around it.
Thanks
1) Is it then possible to nearly/completely wipe my account with one bad trade or on the other extreme, make a complete killing on one good trade?
2) Do you have to use leverage? Is it needed to be profitable in the long term?
Could someone explain it please I just cant seem to get my head around it.
Thanks