Articles on

What is leverage?

Leverage affects the amount of money needed to open a position by multiplying your purchasing power and allowing you to open a position larger than your deposit. The higher the leverage, the less margin is required to open a position of equivalent value, or you can open much larger positions for the same initial margin.

Example: If the client deposited USD 1000 and assuming his/her leverage level is 1:50 then the highest amount that the client can trade with is USD 50.000. A 1:50 ratio means that in order to open a position, the initial margin is fifty (50) times less than the size of the transactions.

Was this article helpful?

What is leverage?

Not finding what you are looking for?

Chat with us or send us an email

Chat with us