Leverage Trading

A high-risk investment strategy that allows traders to control a large position in a financial asset by putting up a relatively small amount of capital. It involves borrowing funds from a broker to increase the potential profits (and losses) from price movements in the asset.

What You Need To Know

In the U.S., regulators like the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) impose strict limits on leverage which will highly influence on what will be allowed by exchanges.