This is because forex brokers typically allow for margin trading. So you can borrow funds from the broker to fund a portion of the transaction. In the U.S., leverage on currency transactions is ...

The maximum ratio can vary between brokers, market regulations, and asset classes — from reasonable 2:1 for equities to monstrous 300:1 in the forex market ... leverage and margin are both ...

Forex trading by retail investors has grown ... You put up $5,000 as a margin, which is the collateral or equity in your trading account. This implies that you can initially place a maximum ...