However, like all tools, leverage works in both directions, and if leverage is changed, increased, or decreased, a trader's Income Statement (P&L) can be impacted dramatically. For brokers, the exposure associated with leverage can also be managed dynamically, which makes it easier for brokers to limit their risk exposures and keep their clients happy.
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https://open.substack.com/pub/smith0001a/p/how-leverage-adjustments-impact-profit
Leverage is a powerful financial tool that enables a trader to control large positions of
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