Simply put: the leverage effect is a multiplier of your trading results. In other words: leverage is the use of borrowed funds to increase one's trading position beyond what would be available from their cash balance alone.
For example:
Leverage: Up to 1:500 (requires a 0.2% margin)
Forex contract size: 100 000 EUR = 1 lot in EUR
Required Margin: 100 000 euros / 500 = 200 EUR
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article