Leverage in forex trading can be both useful and dangerous. It amplifies potential profits, allowing traders to control larger positions with smaller capital. However, it also magnifies losses, increasing the risk of account depletion. Proper risk management is crucial when using leverage. Traders should understand the concept, assess their risk tolerance, and use it judiciously. Implementing appropriate position sizing, setting stop-loss orders, and having a disciplined approach mitigates the dangers of leverage. Understanding the balance between potential rewards and risks is essential to navigate the forex market effectively and make informed trading decisions.