ishan agarwal
Banned Multi
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Leverage is often expressed as a ratio or percentage, known as the leverage ratio or margin requirement. For example, a leverage ratio of 2:1 means that an investor can control an investment worth twice their own capital. Higher leverage ratios, such as 3:1 or 5:1, allow investors to control even larger positions relative to their capital.
It's important to note that while leverage has the potential for higher returns, it also carries significant risks. If the market moves unfavorably, losses can exceed the initial investment, resulting in substantial financial losses. Therefore, it is crucial to have a clear understanding of the risks involved and to use leverage judiciously and responsibly.
It's important to note that while leverage has the potential for higher returns, it also carries significant risks. If the market moves unfavorably, losses can exceed the initial investment, resulting in substantial financial losses. Therefore, it is crucial to have a clear understanding of the risks involved and to use leverage judiciously and responsibly.