Leverage
The ability to open a position several times the size of your margin (e.g. 1:30, 1:100). It magnifies losses as much as profits.
At 1:100 leverage, $1,000 of margin controls a $100,000 position. Leverage doesn't create risk by itself; position size and stop distance determine risk. But high leverage is indirectly dangerous because it makes it easy to open an oversized position.
In regulated markets, leverage for retail investors is capped (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.
- Kaldıraç: dost mu düşman mı?Risk & money management
- Kripto piyasası: spot, vadeli ve fonlama oranıMarkets
- Regülasyon: FCA, CySEC, ASIC ve SPK ne anlama gelirBrokers
- Yurt dışı broker kullanımı ve yasal durumTax & legal
- Açık pozisyon (open interest) ve fonlama verisiOrder flow & market microstructure
- Yeni başlayanların en sık yaptığı 10 hataGetting started with trading