Trading glossary
Leverage: meaning in trading
Leverage lets you control a large position with a small deposit, which magnifies both profits and losses.
With 30 to 1 leverage, £1,000 of margin can control a £30,000 position. In the UK the FCA caps leverage for retail clients at 30 to 1 on major currency pairs.
The real risk control is the stop, not the leverage
Leverage only sets the most you could open. What you actually risk is decided by your stop loss and lot size. Plenty of traders blow accounts with low leverage and huge size; plenty trade safely with high leverage and small, fixed risk.
Forex and CFDs are high risk because of leverage. Most retail accounts lose money.
Learn more
Guide: What is forex trading?