What does leverage mean?
In Forex and CFD trading, the term 'Leverage' refers to the ability to trade a bigger volume with a smaller deposit. Brokers set aside a certain amount as 'collateral' to allow you to hold a greater position than your investment. Leverage is measured in terms of ratios such as 30:1 or 5:1. Please remember that leverage magnifies price fluctuation. Depending on market movement, this indicates a correspondingly bigger profit or loss. As a result, trading CFDs is fraught with danger. Before opening a live trading account, please ensure that you understand how CFDs operate.