Due to the availability of leverage, forex traders can make a return on a single trade that is multiples of the margin they used to open the trade. However, leverage is a double-edged sword in that big gains can also mean big losses. Therefore, reliance on excessive leverage as a strategy typically leads to the destruction of your account capital over the long run. This is because it only takes one adverse market move to drive the market far enough and triggers substantial losses.

Your expectations of a return on investment are a critical element. When traders expect too much from their account, they rely on excessive leverage and that typically triggers a losing account over time. View forex like you would any other market and expect normal returns by using conservative amounts of no leverage.

Since forex is a 24-hour market, the convenience of trading based on your availability makes it popular among day traders, swing traders, and part-time traders. Regardless of your style, use small (if any) amounts of leverage.