Leverage can be both useful and dangerous in forex trading, depending on how it's used. Leverage allows traders to control a larger position in the market with a smaller amount of capital, potentially increasing profits. However, it also increases the risk of losses and can lead to significant losses if not used carefully. Traders should use leverage sparingly and always practice effective risk management techniques to limit potential losses. It's also important for traders to fully understand the risks and potential consequences of using leverage before incorporating it into their trading strategy.