Leverage attracts people for different reasons. Some see it as a tool for market participation with limited capital. Others use it because they want action. Those motivations lead to very different outcomes. In financial markets, risk is not a coin…
50x leverage (also written as 1:50) allows traders to control a position 50 times larger than their deposited capital. A $100 deposit can open a $5,000 position—but every loss is also magnified 50 times. At this ratio, a 2% adverse…
You might need to adjust your leverage setting on MT4 at some point. This guide shows how to do it safely through your broker, not the terminal. Leverage changes the distance between you and liquidation. Not profit potential. If the…
Leverage trading is legal in the United States, but only under strict rules set by federal regulators. Oversight is provided by the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA), and, for securities markets, the U.S. Securities and…
When trading forex with leverage it is important to understand the difference between lot size and leverage to be able to choose the correct position size. In Forex, lot size refers to the position size while leverage acts as a…
Many traders choose to start with spot trading to learn execution without the added pressure of margin or liquidation risk. There are many advantages to avoiding high risk trading such as smaller losses, no risk for liquidation or margin calls,…
The reality is simple: leverage increases position size, which makes profit and loss scale faster. A 2% market move can be meaningful with a larger notional size, but the same move against you can liquidate a trade instantly. Surviving the…
During the past month, Bitcoin has been on a bull run and broke the important $30.000 level on the 11th of April. While this rise in price has been a boon for all Bitcoin holders, those using leverage on certain…
Margin requirement is the collateral that backs a leveraged position. Traders who use futures, perpetual contracts, CFDs, or margin accounts rely on posted collateral to absorb losses. When collateral runs out, the position is closed, often automatically. Understanding how requirements…
When traders talk about 1:2 leverage (also written as 2x leverage), they mean doubling their buying power with borrowed capital. At this ratio, every dollar you deposit controls two dollars in the market, a balance that increases both profits and…