Leverage
Understand currency pairs, spreads, pips, lots and the basic mechanics of trading.
Leverage
Leverage allows market exposure to exceed the margin posted. It magnifies changes in equity relative to that margin and does not reduce the economic risk of a position. Set size from a risk budget rather than maximum buying power.
Example
A $10,000 notional position at 1:100 illustrative leverage requires about $100 margin, before broker adjustments.
All educational content is provided for general information and educational purposes only. It does not constitute investment advice, financial advice or a recommendation to buy or sell any financial instrument. Trading leveraged products involves significant risk and may result in the loss of invested capital.