๐ฏ Why is leverage limited in Europe and open in the Arab world?
In Europe, regulatory bodies like ESMA impose strict limits on leverage (for example: 1:30, and 1:2 for crypto) to protect traders from high risks and large losses.
๐ก๏ธ The reason?
Many new traders quickly lose money due to high leverage, the European Union decided to protect them by law.
On the other hand, in the Arab world: โ There is no equivalent level of regulation
โ Brokerage firms take advantage of this and offer leverage that reaches 1:500 or more
โ To attract traders looking for quick profits
โ ๏ธ Leverage is not a game
You can gain a lot from itโฆ but you can also lose all your capital in a single trade