I want to really understand what leverage is. Even though I read about it, I still want really understand what it is. Can someone teach me?
It simply allows you to trade funds more than your actual capital at risk. For instance, if your broker offers 10:1 leverage, you can have a $10,000 position with just $1,000 risk. Of course this can work against you too since too much leverage can magnify your losses or trigger a margin call.