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Leverage

Using borrowed capital to increase the potential return of an investment.

What is Leverage in forex trading?

Using borrowed capital to increase the potential return of an investment. Leverage allows traders to control large positions with a small deposit. While it magnifies profits, it also magnifies losses.

What this looks like across the brokers we track

Across the 40 brokers BrokerAnalysis tracks, advertised maximum leverage ranges from 1:30 to 1:3000, with a median of 1:500. 10 of them cap retail leverage at 1:30 or lower, which is the ceiling EU and UK rules impose.

Measured across 40 entities in the BrokerAnalysis dataset. See the full broker comparison

Detailed Explanation

Leverage allows traders to control large positions with a small deposit. While it magnifies profits, it also magnifies losses.

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