Explaining Leverage

1 min. readlast update: 07.11.2025

What is Leverage?

Leverage lets you open larger trades using a smaller amount of your own money. It works by borrowing funds from the broker to increase your market exposure.

For example, with 1:500 leverage, every $1 in your account gives you access to $500 in trade size.

Keep in mind: while leverage can increase potential profits, it also increases potential losses. Use it carefully.

Why is Leverage Important?

Using leverage allows you to:

  • Trade with less capital
  • Take advantage of more market opportunities
  • Amplify your gains when the market moves in your favor

However, it also means:

  • Greater exposure to risk
  • Faster losses if the market moves against you

Leverage by Market

Different types of instruments have different leverage limits. Here’s a quick breakdown:

Forex

Leverage: 1:500

Commodities

Leverage: 1:200

Indices

Leverage: 1:200

Cryptocurrencies

BTC, ETH, SOL:  Leverage 1:100

XRP, DOGE: Leverage 1:50

All other Cryptocurrencies: Leverage 1:30

EU Stocks

Leverage: 1:20

US Stocks

Leverage: 1:10

Agricultural Commodities

Leverage: 1:30

 Note: The leverage you set on your account only applies to Forex. Other markets come with fixed leverage settings that can't be changed.

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