What Is Leverage? BrokerIntro Guide
Leverage lets a trader control a larger market position with a smaller amount of capital. It can magnify both gains and losses.
Key Research Points
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Market exposure
Leverage increases exposure relative to deposited funds.
Margin
A smaller amount is required to open a larger position.
Higher risk
Losses can occur quickly when markets move against a position.
Entity rules
Leverage limits may depend on region and client classification.
Overview
What Is Leverage? Leverage is a trading feature that allows a trader to control a larger market position with a smaller amount of capital. It is commonly used in forex, CFD trading, commodities, indices, cryptocurrencies and other derivative products. In simple terms, leverage increases your market exposure. Instead of paying the full value of a trade, you only need to provide a smaller amount called margin.
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