Leverage allows traders to control a larger trading position with a smaller amount of capital.

It amplifies both potential profits and potential losses.

📊 How does Leverage work?

Leverage is expressed as a ratio, such as 1:100.

Example:

• With 1:100 leverage

• You only need $1,000 margin

• To control a $100,000 position

This means your trading power is increased 100 times your deposited margin.

📌 Why is Leverage important?

Leverage allows traders to:

• Open larger positions

• Use capital more efficiently

However, it also increases risk.

⚠️ Important Risk Warning

While leverage can magnify profits, it can also magnify losses.
Small market movements may significantly impact your account.

Always use leverage responsibly.

⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading with leverage involves significant risk.