Leverage allows you to gain exposure to a larger market position without funding the full value of the trade upfront.
It can make capital usage more efficient, but it also amplifies risk. A small price move can create a much larger gain or loss relative to the margin you put down.
What is leverage?
Leverage means using a smaller amount of your own capital to control a larger financial position. It is expressed as a ratio, such as 1:10, 1:100, 1:500, or 1:1000.
If you trade with 1:500 leverage, every $1 of margin can control up to $500 of market exposure, subject to account, product, and risk settings.
How leverage affects a trade
Imagine you want to trade 1 standard lot of EUR/USD, with a notional contract size of $100,000.
| Leverage | Approximate margin needed |
|---|---|
| 1:1 | $100,000 |
| 1:100 | $1,000 |
| 1:500 | $200 |
The market exposure is the same, but the margin requirement changes. Lower margin requirements can make it easier to open large positions, which is why leverage must be managed carefully.
Leverage magnifies profits and losses
If the market moves in your favour, leverage can increase your return on the margin used. If the market moves against you, losses can build quickly and may trigger a margin call or stop out.
High leverage should not be treated as a trading strategy. It is a tool for managing capital efficiency, and it should be paired with strict position sizing.
How much leverage does TabTrade offer?
TabTrade offers flexible leverage options up to a maximum of 1:1000 on select account types and asset classes.
Maximum leverage can vary depending on:
- Account type
- Platform
- Asset class
- Instrument
- Account equity
- Regional or compliance requirements
- Open positions and risk settings
Your Secure Account Portal and platform specifications show the settings available to your account.
How to adjust leverage
You can request a leverage change from the Secure Account Portal:
- Log in to the Secure Account Portal.
- Open your trading accounts dashboard.
- Select the MetaTrader 5 or cTrader account you want to update.
- Open Account Settings.
- Choose the leverage setting available to you and confirm the request.
For safety, avoid requesting a leverage change while you have open positions. A leverage change can alter margin requirements and may affect active trades.