Leverage is the use of a smaller amount of funds to increase one’s trading position beyond what would be available from their cash balance alone. For example, a trader with leverage of 100:1 can buy 1 lot of an FX position worth $100,000 by only investing $1,000.

Default Leverage: The amount of leverage a trader is allowed will be based on the amount of equity they have, according to a sliding scale. The amount of leverage offered will be reduced once equity crosses predetermined thresholds, as shown below:

• Equity between $1 and $20k: 100:1 leverage
• Equity between $20k and $50k: 5:1 leverage
• Equity above $50k: 1:1 leverage

It’s important to note that while leverage can increase potential profits, it can also increase potential losses. As such, it’s important to use leverage responsibly and manage risk appropriately.