What is leverage?

If the margin your account is associated with 1%, this means that the leverage is 1:100, meaning that you only 10 euro are necessary in order to buy 1,000 euro on the forex market.

The other name for leverage, and indeed for margin, is greed. There are some brokers out there who offer 1:500 greed (margin 0.25%). Would you like to have an account with 1:500 greed? Yes, why not? Because you could make money 5 times faster than if you had the usual greed of 1:500, right? Are you sure you don't need to be reminded that at the same high speed you could blow up your account?

US forex accounts have a 1:50 leverage maximum, while EU accounts are limited up to 1:30 for the main currency pairs.