Leverage allows traders to control larger positions with smaller amounts of capital. It's expressed as a ratio (e.g., 100:1) meaning you can control $100,000 with $1,000. While leverage amplifies profits, it also magnifies losses.
Learn more: What is Leverage?
With 100:1 leverage, a $1,000 deposit can control a $100,000 position. A 1% market move results in a $1,000 gain or loss (100% of your deposit).
