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.