Leverage changes exposure
Leverage lets a trader control a larger notional position relative to the funds set aside as margin. It changes exposure; it does not make a trade safer or improve the odds of success. A small price movement can have a larger effect when exposure is high.
Understand required and free margin
Required margin is the amount a provider sets aside to support an open position. Free margin is remaining available equity under that provider’s calculation. Definitions, close-out procedures and margin calls can differ, so read applicable account terms and platform documentation.
Plan for adverse movement
A stop order may not guarantee an exit at the requested price during gaps or fast markets. Consider how a loss, spread widening or financing adjustment could affect margin. The FTB position size calculator and risk-planning guide can help you examine the numbers.
Check the account entity and rules
Leverage limits and protections can depend on jurisdiction, client classification and service entity. Start with your relevant country guide, then confirm current rules with the provider and applicable authority. This article is educational, not legal or financial advice.
Forex and CFD trading can result in losses. Availability, costs and rules vary by provider and location. Verify current terms. This guide is educational and is not personal financial advice.
