Michael Kenneth T Gonzalez#68

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How does regulation affect leverage in forex trading?

Regulators impose leverage caps to protect retail investors from catastrophic losses. EU (1:30), U.S. (1:50), and Japan (1:25) limits contrast with offshore offers of 1:1000 or higher. Institutions trade with custom leverage agreements, rarely exceeding safe thresholds. Benefits: leverage caps prevent account wipeouts. Risks: traders attracted to offshore brokers ignore safeguards. Leverage regulation reflects a core principle: survival first, profit second. Caps may frustrate aggressive traders but extend longevity.