What are the advantages and disadvantages of using high leverage?

[Rose Fraise]

Forex brokers often offer loans to their traders so that they can trade effectively which is called leverage. Nowadays almost all broker offers high leverage. However, it is a double-edged sword. It also exposes risk. Traders may even lose their entire capital in a trade due to high leverage. So, use leverage wisely. My broker Eurotrader also offer me high leverage up to 1:500. But I only use 1:100 to control risk.

[FXOpentrading]

Using high leverage allow trader to open bigger position size which means if trader get a profit will getting bigger profit. However using a big position size will reduce margin level quickly and possible getting quick margin call where your order will automatically closed by the broker because level margin below margin call level.