# Leverage

### Account leverage

##### What is leverage?

Forex Leverage is defined as the use of borrowed capital, such as “margin” allowing the Forex trader to gain access to larger sums of capital. This can heighten profits and losses and should be used wisely.

##### Examples of forex leverage

Here is an example of how leverage works in Forex trading:

Forex Trader A has $5,000 USD: If Forex Trader A has an account leverage of 10:1 and they wish to use$1,000 on one Forex trade as margin, they will have exposure of $10,000 in base currency ($1,000) = 10 x $1000 =$10,000 (trade value).

Forex Trader B has $5,000 USD: If Forex Trader B has an account leverage of 100:1 and they wish to use$1,000 on one Forex trade as margin, they will have exposure of $100,000 in base currency ($1,000) = 100 x $1,000 =$100,000 (trade value).

##### What leverage does VT Markets offer?

Margin Forex is very high risk and leverage should be used wisely.