Forex Leverage

Video: 

The speaker discusses a basic concept in the forex market, leverage.  Typically, brokers will allow clients leverage in the forex market in the amount of 100:1 and even 200:1.  When you put in a deposit for $200, you are trading with $20,000. Through a simple trading example, he shows you how your account could be wiped out with 1 bad trade and discusses the importance of stops.