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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.