In some fields of business, such as real estate, you'll frequently hear that the way to make money is by "using other people's money". This is true in the case of every real estate transaction that involves a mortgage; when you use a mortgage to buy a house, you are using other people's money, in this case, the bank's. The concept of using other people's money to enter a transaction can also be applied to the financial markets through a tool known as leverage. In this article, we'll explore the benefits of using borrowed capital for trading and will examine the common misconceptions about this tool's excessive risk. To read the rest of this article, please click on the following link.

http://www.investopedia.com/articles/forex/08/forex-leverage.asp

Selwyn Gishen authors articles for Investopedia.Com.