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Leverage

Leverage

Leverage is the ratio of a client's personal funds to the amount of funds required to open a position. Leverage is a feature offered by financial brokers that allows the client to trade with a volume that significantly exceeds the amount of personal funds they have at their disposal. These funds don't appear on the client's account, but are used directly in the trade when the client opens a position on the currency market in accordance with the amount of leverage set for the instrument or selected by the client.

The amount of leverage only affects the margin level (the minimum amount of funds required to open a position). The higher the leverage, the less personal funds are required to open a position. The amount of leverage can range from 1:1 to 1:1000.

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