Leverage explained.

In an ideal Forex Market, you can only open trades with Volume of At least 1.
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And to do this, you need at least 100,000 in your account.

But as you can see, you are able to open trades with volumes greater than 1, with much less account balance, how is this possible? Well the answer is leverage…
Note
1 is the Standard Volume.
A Standard Volume is Equal to 100,000.
Simple Math
Assuming you has an account balance of $200, and you choose a leverage of 1000:1 with your broker.
Simple math….1000:1 leverage*200=200,000
So with the leverage, although your actual balance is 200, your “leverage Balance” is 200,000. 200,000 is the “leverage balance” you have available to use.

Now, as I mentioned above.

To open a Volume of 1, you need 100,000 as your balance, but since you have a leverage amount of 200,000, you can open a volume of 2 (200,000/100,000)
This means, if you have an account balance of $200 with a leverage of 1000:1, you can still open a volume of 2!