Can someone give (or point me to) a concrete example of how leverage trading works?
Let's say in Forex. I have $1000, and I want to short/long the Euro at a 1:100 leverage. How much do I stand to gain? What exactly are my risks? Are there any risk to the company I'm trading via? Are the prices I trade in exact representations of the market, or am I trading in a "bubble market/simulation" of the real Forex market?
(That's a claim I've actually heard this week)
I found this question ... but I'm not looking for a "definition", rather for a concrete example.