

How Does Leverage Work?
Leverage allows traders to control larger positions with...

Leverage allows traders to control larger positions with a relatively small amount of capital. For example, using 1:100 leverage enables a trader to open a $100,000 position with $1,000 margin.
While leverage amplifies potential gains, it also magnifies losses. Effective risk management, position sizing, and stop-loss strategies are essential when trading with leverage.

