> Higher leverage is beneficial if you prefer not to use all available funds for trading
Can you not lose more than you have in your broker account in any case, with leverage?
Can you not lose more than you have in your broker account in any case, with leverage?
That is why you are often limited as individual trader to a relatively safe leverage level. Higher leverage is often possible if you post some collateral (often in the form of AAA/gov bonds).
The leverage level you are granted is often dependent on the asset class and your experience with it. FX being relatively low volatility, you can indeed get high leverage without too much scrutiny.
Overall it is a very lucrative business for brokers. The gathered funding fees are higher than the rare occasional losses. Pretty much like banks when doing loans.
https://www.reuters.com/article/us-swiss-snb-brokers-idUSKBN...