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Risk

Leverage — definition & meaning

Borrowed exposure that lets you control a large position with a small deposit.

Leverage lets you control a position much larger than the cash in your account. At 30:1 leverage, £1,000 of your money can control a £30,000 position.

Leverage multiplies both profits and losses. A small move against a highly leveraged position can wipe out a large share of your account, which is a big reason most retail traders lose money.

Regulators in many regions cap the leverage brokers can offer retail clients precisely because it is so risky. Treat high leverage with caution.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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