Leverage

Updated 2026-09-20

Definition

The ratio between the value of a position and the margin required to open it. It amplifies both gains and losses.

Why it matters

With 1:30 leverage and 1,000 you can control a 30,000 position. Real risk doesn't depend on leverage but on position size and stop loss. In the EU and UK retail brokers face limits (1:30 on majors).

Practical example

With 1:30 leverage a 30,000 position needs about 1,000 of margin. If price moves 1% against you, you lose about 300, or 30% of the margin.

Learn more

Course lesson: Pips, lots, leverage and margin: the numbers that save your account

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Educational content, not financial advice. Trading involves risk.