What is a leverage?
Tatiana Belchikova avatar
Written by Tatiana Belchikova
Updated over a week ago

Simply put: the leverage effect is a multiplier of your trading results.

For example, if your leverage is 1:30, instead of a 1% profit or loss, you can do 30% profit or loss in a single day. In other words: leverage is the use of borrowed funds to increase one's trading position beyond what would be available from their cash balance alone.

For example:

Leverage: Up to 1:30 (requires a 3.33% margin) for retail traders

Forex contract size: 100 000 EUR = 1 lot in EUR

Required Margin for the retail trader, 3.33%: 3.33% x 100 000 euros = 3 330 EUR

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