The ratio of investment to actual value is called "leverage". Leveraged financing, i.e., the use of credit, such as a trade purchased on a margin, is very common in Forex. Using a $1000 to buy a Forex contract with a $100,000 value is "leveraging" at a 1:100 ratio. The invested amount of $1000 is all that is under risk in order to achieve the gain of $100,000. The loan/leveraged in the margined account is collateralized by an investor's initial deposit. As a result, this may result in being able to control $100,000 for as little as $1,000.
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