Leverage ensures that you can open a trade with a much larger value with only a small investment.
It is the ratio between the amount of money you have and the amount of money you can trade.
Leverage per Asset
In the examples below, you can see very clearly that leverage allows you more purchasing power and therefore more potential profit. But don't forget that this also applies to losses!
- MAJORFOREX PAIRSFixed Leverage 1:30Consider a EUR account with 1 buy (or sell) lot on EURUSD.1 lot * 100,000 / 30 (leverage) = 3,333.33 EUR
- MINORFOREX PAIRSFixed Leverage 1:20Consider a USD account with 2 buy (or sell) lots on USDHUF.2*100,000 / 20 (leverage) = 10,000 USD
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