#firstdealofthenewyearFateema Leverage and margin are key concepts that allow traders to control larger positions with a smaller amount of capital. They amplify both profits and losses, making risk management essential. --- 1. What is Leverage? Leverage is the ratio of a trader’s capital to the size of the position they can control. It allows traders to trade larger amounts with a small deposit. Example of Leverage: 1:100 leverage means that for every $1 in your account, you can control $100 in the market. If you have $1,000 in your account, you can control $100,000 worth of trades.