Leverage is one of the most attractive and dangerous elements of trading Forex. Most Forex Brokers offer leverage of up to 1:500. Many traders understand the way that leverage can Maximize their returns but do not understand the negative aspects of leverage and how much it can cost. when Using excessive leverage the trader leaves themselves open to massive draw downs on even small market down turns. As we outlined in previous entries Many traders struggle with entry and exit points. When using excessive leverage the importance of setting appropriate entry and exit points becomes amplified.