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An unsuspecting and clueless online trading public swallowed this hook, line and sinker and were trading with 100:1 and 200:1 leverage, not understanding what they are doing. In reality the broker simply said we will allow you to lever your margin up to 100:1, 200:1 or 400:1 at the absolute maximum, if you utilized all your borrowing power with us. But you must remember leverage is a double-edged sword. It can work for you and against you. And so a race started amongst the forex losers.

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