TRADING GLOSSARY
Leverage
Leverage lets you control a larger position with a smaller deposit, called margin. It magnifies both profits and losses, so losses can exceed what you expected very quickly.
EXAMPLE
At 1:500 leverage, a 100,000 EUR position in EURUSD needs 200 EUR of margin (100,000 ÷ 500).
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RELATED TERMS
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure