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Leverage ratio — definition & meaning

How many times your deposit your position size can be, e.g. 30:1.

A leverage ratio like 30:1 means you can control a position 30 times the size of the margin you put up. Higher ratios need less margin but magnify risk.

Regulators often cap retail leverage (for example around 30:1 on major forex in some regions) to limit how quickly clients can lose money. Just because high leverage is offered doesn't mean you should use it all.

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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