Leverage allows you to open larger trading positions than your account balance would normally permit. It multiplies your buying power, making it possible to control a higher-value trade with a smaller amount of capital.
To use leverage, you provide a margin deposit—a portion of the full trade value—as collateral.
The higher the leverage, the lower the margin required.
🧮 Example: Initial Margin vs. Leverage
Account Balance | Leverage | Buying Power (Trade Size) |
$1,000 | 1:1 | $1,000 |
$1,000 | 1:10 | $10,000 |
$1,000 | 1:33 | $33,000 |
Leverage can be displayed as a ratio (e.g., 1:20) or a percentage (e.g., 5% margin). Both formats are shown on our website.
💡 How It Works
If you choose 1:20 leverage, this means:
You only need 5% of the total trade size as margin
To open a position worth $100,000, you only need $5,000 in your account
⚠️ Important Risks
While leverage increases your potential profits, it also amplifies potential losses. Misuse can lead to:
Rapid losses
Stop Out (automatic closure of your positions)
Greater impact of spreads and swaps on your capital
For example:
If the spread is 0.1%, and you use 20x leverage, the spread will cost you 2% of your margin upfront.
🧾 Real-World Example
With 1:5 leverage, you'd need €20,000 to open 1 lot of EUR/USD (100,000 units)
With 1:30 leverage, you'd only need €3,333 for the same position
Use leverage responsibly as part of a risk-managed strategy. Let us know if you want to adjust your leverage settings or explore lower-risk account options.