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Leverage
What is leverage?
Learn more about leverage and how to use it
Understanding leverage |
Leverage in trading is using borrowed funds from a broker to control a larger market position than your own capital allows and gain significant exposure |
How to use leverage |
Leverage is powerful in helping you generate substantial returns. However, it’s important to remember that while leverage can increase your profits, it can also amplify losses. We recommend using stop-loss orders to manage risk effectively when trading with leverage. |
Leverage types |
Leverage varies significantly by region and regulator, with strict limits of 1:50 in the US and 1:30 for major pairs in the EU. Offshore brokers or broker entities offer much higher leverage, sometimes 1:1000, 1:2000 or even 1:4000. |