GLADIOGLADIOTrading
Glossary

Leverage(Leverage)

The ability to open a position several times the size of your margin (e.g. 1:30, 1:100). It magnifies losses just as much as profits.

Also written as: kaldıraç

With 1:100 leverage, $1,000 of margin controls a $100,000 position. Leverage by itself does not create risk; risk is determined by position size and stop distance. However, high leverage is indirectly dangerous because it makes it easy to open an oversized position.

In regulated markets, leverage is capped for retail investors (1:30 on major pairs in the EU/UK). Prop firms generally offer between 1:30 and 1:100.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.