How does leverage affect my buying power?
Leverage allows you to control a large position with a small amount of capital. It acts as a multiplier for your buying power.
Example:
- With 1:100 leverage, $1,000 in margin allows you to control $100,000 worth of currency.
- With 1:500 leverage, the same $1,000 controls $500,000.
Important Risks:
- Higher leverage increases potential profits but also increases risk of rapid losses.
- If the market moves against you, losses are calculated on the full position size, not just your margin.
You can adjust your leverage settings in the CRM Dashboard under Account Settings, provided your account type permits it. Always trade with leverage that matches your risk tolerance.
Quick actions
Was this article helpful?