Leverage is a tool that allows you to open a trade that is much larger than the money you actually deposit. It increases your exposure to the market without requiring you to deposit the full value of the trade.
The small amount of your own money needed to open this large trade is called margin.
How Leverage Works
At Tradin, leverage is shown as a ratio (e.g., 1:50 or 1:100). This ratio tells you how much your purchasing power is multiplied. For every $1 of your capital, the leverage ratio determines the total market value you can control.
| Leverage Ratio | Meaning | Example |
| 1:50 | For every $1, you control $50. | You control a $5,000 position with only $100 of your money. |
| 1:500 | For every $1, you control $500. | You control a $5,000 position with only $10 of your money. |
| 1:2000 (Max) | For every $1, you control $2,000. | You control a $20,000 position with only $10 of your money. |
Example:
Let's say you have $1,000 in your Tradin account and you choose to use 1:100 leverage:
- Your Capital: $1,000
- Leverage Multiplier: 100
- Total Trading Power:
You can now open trades up to a total value of $100,000, using just your $1,000 as margin.
