Through his account of the Peloponnesian War, Thucydides highlighted a dilemma that can arise from the rivalry between two major geopolitical powers. Centuries later, Graham Allison introduced the term 'Thucydides Trap' to describe the risk of conflict between an established and a rising global superpower.

The Enduring Clash Between an Established and an Emerging Superpower

In 432 BC, the assembly of Spartan citizens (Apella) decided to declare war on Athens. This decision was based on the belief that within a few years, Athenian power would grow to such an extent that it would threaten Sparta’s very survival. The rapid rise of Athens had already disrupted the balance of power, prompting Sparta to launch a preemptive war.

Read more: Global Markets Under the Thucydides Trap

Trading Leverage -Risks and Opportunities

Every Forex trader knows that leverage is an essential part of trading. It is one of the most important concepts in Forex, as it allows you to trade with much less capital than you would otherwise need.

How does it work? What does leverage mean, and what are its risks? This article will answer these questions, starting with the basics.

What is trading leverage?

Simply put, leverage lets you use borrowed money to increase your potential profit. Financial leverage allows you to invest more than your own capital, enabling higher returns. You can use leverage to buy more assets or enter more profitable positions.

Trading Leverage and the Forex Market

In Forex trading, leverage is very common. Traders borrow money from a broker to trade larger positions in currencies. The broker requires a percentage of the trade’s notional value to be held in your account as cash, called the initial margin.

If the currency moves in your favor, leverage can increase profits. However, it also magnifies losses, so it is crucial for traders to use leverage wisely and manage risks carefully.

Leverage is expressed as a ratio, allowing you to control more currency units with the same deposit.

Read more: Trading Leverage

The program is available to all RoboForex clients who trade Forex currencies and metals and maintain an account balance

The "Up to 10% on account balance" program at a glance

• RoboForex offers up to 10% of extra funds on any account balance, calculated based on each client’s trading volumes (read below)
• After opening an account, traders must accept the conditions of the program in their Members Area
• Traders can receive additional funds in their account balance regardless of the base currency (USD, EUR, etc.)
• All real account types apply to the program (including ECN and CopyFX)
• The program is based on volumes deriving from trading Forex and Metals (read below)
• The extra funds received are not a bonus, and it’s up to the client to decide whether to withdraw this money or use it in trading

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Read more: RoboForex Bonus -Up to 10% of Extra Funds on all Real Accounts