The trading power in financial market greatly depends upon the leverage and margin. The maximum trading power of any account is calculated by increasing the maximum leverage ratio by the account value. Usually margin and leverage increases the chances of profit and loss by increasing the trading power. The leverage is the money that trader get in addition with the real deposit into account.
Leverage is presented in form of ratio such as 1:100 or 1:500. This ratio state that for every $1 deposit made by the investor, he or she is able to enter into trade worth $100 or $500. High level of leverages are also offered by the brokers that increase the maximum trading power and make it easy to enter and get out of trade.