Risk and trade management
Leverage and margin
Leverage lets you control a position larger than your account; margin is the part of your money the broker blocks as a deposit.
Why it works
Leverage does not change your risk if you size correctly, but it makes it very easy to oversize and blow an account.
How to use it
Decide risk with the stop and position size, never with the available leverage. Keep total exposure modest.
The typical mistake
Opening the biggest position the leverage allows because “the margin is enough”.
FAQ
What is Leverage in trading?
Leverage lets you control a position larger than your account; margin is the part of your money the broker blocks as a deposit.
How do you trade Leverage?
Decide risk with the stop and position size, never with the available leverage. Keep total exposure modest.