<p><strong>Leveraged lease</strong>, also known as a leveraged buyout (LBO) or leveraged financing, is a type of financial transaction where an investor uses borrowed money to purchase an asset, with the expectation that the asset's future cash flows will generate enough income to repay the loan and provide a return on the investment. This strategy is commonly used in various markets, including Forex and CFD trading, to control a larger position with a smaller initial investment.</p>

<h2>How It Works</h2>
<p>A leveraged lease typically involves three parties:</p>
<ul>
  <li><strong>Investor/Lessor</strong>: Provides the capital to purchase the asset.</li>
  <li><strong>Lessee</strong>: Uses the asset and makes lease payments.</li>
  <li><strong>Lender</strong>: Provides the borrowed funds to the investor.</li>
</ul>
<p>The investor purchases the asset using a combination of equity and debt. The lessee then makes lease payments, which cover the interest on the debt and provide a return on the investor's equity. The lessee may also have the option to purchase the asset at the end of the lease term.</p>
<p>In the context of Forex and CFD trading with a broker like STB Provider, leveraged trading works similarly. Traders use borrowed funds (leverage) to control a larger position, aiming to generate profits from small price movements. The broker provides the leverage, and the trader's margin requirement is the 'equity' in the transaction.</p>

<h2>Why It Matters for Traders</h2>
<p>Leveraged trading can significantly amplify potential profits, but it also magnifies potential losses. Here's why it matters for traders:</p>
<ul>
  <li><strong>Increased exposure</strong>: Leverage allows traders to control larger positions with a smaller initial investment, enabling them to potentially profit from smaller price movements.</li>
  <li><strong>Higher risk</strong>: While leverage can amplify gains, it also amplifies losses. If the market moves against the trader's position, losses can exceed the initial investment.</li>
  <li><strong>Margin calls</strong>: If the value of a trader's position falls below a certain level, the broker may issue a margin call, requiring the trader to deposit additional funds or close the position to maintain the required margin level.</li>
</ul>

<h2>Example</h2>
<p>Suppose a trader at STB Provider wants to buy 100,000 units of EUR/USD using MetaTrader 5 with a leverage of 1:300. The current price of EUR/USD is 1.20000, and the required margin is $333.33 (1/300th of the total position value).</p>
<p>If the price of EUR/USD moves to 1.20500, the trader's position would be worth $5,000 (100,000 units * $0.005 gain per unit). Without leverage, the trader would need $5,000 to control this position. With leverage, the trader only needs $333.33, and the potential profit would be $1,666.67 ($5,000 - $333.33 margin).</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Leveraged trading amplifies both potential profits and losses.</li>
  <li>Traders should carefully manage risk and monitor their positions to avoid margin calls.</li>
  <li>Leverage allows traders to control larger positions with a smaller initial investment.</li>
  <li>Leveraged trading is available on platforms like MetaTrader 5 at brokers like STB Provider, with up to 1:300 leverage.</li>
</ul>