Leverage deserves special attention if leveraged products are available.
Leverage can allow users to control a larger market exposure with a smaller amount of capital. While this may increase potential gains, it can also magnify losses.
Someone who does not understand leverage may take on more exposure than intended.
Before using leveraged products, users should understand how the mechanism works, what the potential losses could be, and what conditions apply.
Beginners may want to gain a solid understanding of trading fundamentals before considering high-risk products.
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