Leverage and margin explained
Leverage lets you control a large position with a small deposit called margin — it multiplies both profit and loss, which is exactly why risk management matters so much.
What leverage means
With 1:100 leverage, $1,000 of margin controls a $100,000 (one standard lot) position. A small favourable move is amplified into a meaningful gain — but an adverse move is amplified just the same.
Margin and margin calls
Margin is the money your broker sets aside to hold a trade open. If losses eat into it too far, the broker issues a margin call and may close positions automatically. Keeping spare balance avoids this.
Choosing sensible leverage
High leverage isn't free money — it's risk. Beginners should use modest leverage and small lots. What protects you is your position sizing and your stop-loss.
Leverage with FxErvin signals
Every signal comes with a stop-loss that caps the loss on each trade. Combine it with our capital-management rule and leverage becomes a tool, not a trap.