Leverage is the use of debt (borrowed capital) in order to undertake an investment. Leverage is expressed in ratios, for example 100:1. If a trader uses a leverage of 100:1, the broker will set aside $1,000 from the traders account in order to control a $100,000 position. Most professional forex traders trade with a small leverage (i.e. 20:1, 10:1, or even lower) to save their accounts from high losses. Unexperienced traders often use a high leverage of 1:100 or 1:200 which often eliminates their account quickly.