Leverage is one of the most attractive features of Forex trading, but it can also be one of the most dangerous. It allows you to control a large position with a small amount of capital, magnifying both your potential profits and losses. For example, with 100:1 leverage, a 1% market movement could result in a 100% gain or loss on your account. While this can be tempting, excessive leverage often leads to overexposure and significant drawdowns. The key is to use leverage responsibly. Start with lower leverage ratios, such as 10:1 or 20:1, and focus on managing your risk. Always use stop-loss orders to protect your account, and never risk more than you can afford to lose. Leverage is a powerful tool when used wisely, but without discipline, it can quickly become your downfall. 📊