Most brokers earn fees when traders borrow leverage. This applies to leveraged products only and does not apply to spot trading or unleveraged investing. Leverage increases broker revenue because the fees scale with position size, even when traders lose. It…
Short selling is always done with borrowed money — and that’s exactly why leverage plays such a big role. When you short a crypto coin, a stock, or a forex pair, you’re not just betting on a price drop, you’re…
Yes, whenever you trade with leverage in forex, crypto, or stocks, you always pay back the amount you borrowed from your broker. This happens automatically when you close the trade, whether you end in profit, loss, or break-even. You repay…
The liquidation price is the exact price level where your broker or exchange will automatically close your position to prevent further losses. In other words, it’s the point where your margin can no longer cover the risk. At Leverage.Trading, we…
A leveraged position is a trade that uses borrowed capital from a broker to increase exposure. It changes how losses and gains are calculated because the result is based on the full position value, not just the money you deposit.…
Yes, you can lose more money than you invest with leverage, depending on how your broker is set up. That’s why understanding margin rules and protections is the single most important step before placing a leveraged trade. The catch? Many…
Choosing a leverage ratio in forex takes more than picking a number like 1:20, 1:50, or 1:100. The right ratio depends on how well you understand risk, how you manage volatility, and whether your strategy can survive losses without blowing…
In this complete forex leverage guide, we break down how margin and borrowed exposure work for traders who already understand basic spot FX trading. You will learn how leverage actually works in FX, how it changes your position sizing and…
Choosing how much leverage to use is less about chasing a number and more about controlling how quickly you can lose capital. In crypto, the ratio should reflect your volatility exposure, execution speed, and your ability to manage risk without…
Understanding how leverage affects losses in trading is one of the most important skills for anyone who trades futures, margin, or other leveraged products in forex, crypto, or stocks. Losses behave differently when borrowed capital is involved, and these differences…