What are leveraged positions ?

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Leverage is a technique to multiply gains and losses. It involves buying more of an asset by using borrowed funds. On CloakFX, the leverage is completely adjustable when you open an order. High leverages, however, can increase both profits and losses dramatically and can also be used to reduce counterparty risks, since only a portion of your position size has to be deposited on CloakFX. You can use our Profit/Loss calculator to get a better understanding of leverages.