Leverage

What is leverage in trading? Leverage is the ability to control a large position in the market with a relatively small amount of capital. It essentially allows traders to borrow funds to increase their exposure to a financial asset without needing the full amount of capital to open the position.

How does leverage affect my trading and profitability? Leverage allows you to control larger trades with a smaller amount of capital. For most clients, we recommend sticking with the default leverage settings to maintain a balanced approach and reduce unnecessary risk. Adjusting leverage can impact your account’s performance, so we suggest following the advice of your account manager for the best results. This helps ensure your trading stays aligned with your goals while managing risk effectively.

What leverage should I use for my account? The leverage you choose can significantly impact your trading results. We generally recommend using the default leverage setting, which is designed to provide a balanced approach for most clients. A common leverage ratio is 1:500, which allows you to control larger positions with less capital