Protection and Account Mechanics / Account mechanics

What is Leverage?

Leverage lets a position have more market exposure than the cash margin set aside.

Lesson 6 / 74 minBeginner
01 / What you'll learn

Leverage lets a position have more market exposure than the cash margin set aside.

04 / Visual explainer
Without■■
Market exposure
With leverage■■■■■■■■
Leverage can magnify potential gains and potential losses.
05 / WHY IT MATTERS

Exposure can grow quickly, so the loss side must be understood first.

06 / Explain it simply

What is Leverage?

Leverage lets a position have more market exposure than the cash margin set aside.

07 / Everyday example

A small deposit can control a larger contract, which means small price moves can have a larger effect on the account.

08 / MT5 example
BrokerMT5Your order

The broker account shows leverage and margin requirements. The exact rule depends on entity, product, and jurisdiction.

DEMO ACCOUNT

What is Leverage?

Practice with Virtual money. No live order is required.

  1. 1Open your demo account
  2. 2Choose a symbol
  3. 3Open the order window
  4. 4Find the relevant field
  5. 5Enter a practice value
  6. 6Review before submitting
09 / Key takeaways
  • Leverage magnifies exposure.
  • It magnifies losses as well as gains.
  • Maximum leverage is not a recommended size.
10 / Common mistake

Treating high leverage as extra free money.

Mini quiz

What can leverage magnify?

Quiz progress is saved with this lesson when you mark it complete.
What is Leverage? | 85st. Academy