How to explain leverage in the forex market?

Alright, imagine you have $100, and you want to trade currencies, like turning dollars into euros. Forex leverage is like borrowing a magnifying glass to make your $100 worth more in trades. So, if you have 10 times leverage, it's like having a magnifying glass that makes your $100 look like $1,000 in the trading world. It can be cool because you can control a larger amount of money, but you need to be careful because if the trade doesn't go well, you could lose more too. It's like using a big magnifying glass – it can make things look bigger, but it also means you have to be extra careful.

Leverage lets you use more capital than you really have on your account balance and this let alone is a pretty essential point for me to understand why leverage is important. But, I’m also aware of the downsides of leverage, which is why I always trade using risk management strategies to minimise my losses in case of an unfavourable trade.