Leverage also affects the cost of trading in Forex, because for each trade you need to pay a certain amount.
If a trader does not know how to manage capital and predict the most likely outcome of a transaction, then a large leverage can only harm him
Leverage does not increase the commission you have to pay to your broker. What increases the commission is the size of your trade, or the more trades you open and close, the higher the total commission you pay.
Using 4:1 leverage does not affect the spread cost directly. You will still pay the 2-pip spread for the EUR/USD trade. Leverage impacts the position size and potential profit/loss, but the spread remains the same. The spread is a fixed cost regardless of leverage used.
If you use 4:1 leverage on a EUR/USD trade and the spread is 2 pips, you still only pay 2 pips for the spread. Leverage affects the size of your position and the potential profits or losses, but it does not directly impact the spread you pay. The spread is the difference between the bid and ask price, and it remains the same regardless of your leverage. However, higher leverage means you're controlling a larger position, so the monetary value of that 2-pip spread will be larger.
You still only pay 2 pips for the spread, regardless of the leverage you use. Leverage amplifies your position size and potential profits or losses, but it doesn’t affect the spread cost itself. The spread is the cost to enter and exit a trade, and it remains the same, whether you're using leverage or not.