how does leverage work?

[Nomaty]

Hi I am learning how to invest in forex and I have a doubt about leverage, I understand that it is used to have more profit but it is at the same time more risky, but I want to know if I have a balance of 10k and I invest 200$ with 1:500 of levarage how much money I will have invested and how much I can lose? Will I have to give money to the broker if I lose, I mean more than what I invested (200$)?

[dmax1]

dude do urself a favour and don't use leverage,use max 2x lev is u must-1:500 is asking how to lose money basically,a very very little fluctuation will get u liquidate,learned lev trading on my skin,and i'd advise against lev trading-just do spot,max 2x lev,never over that.

[Fetchero]

I would say, if you ever use leverage. Be ready mentally to be able to loose it all and some, really highly risk and would advice against you using it tbh.

[souleater8]

I dont recommend using levrage at all. Its really risky you can lose all your money in seconds