What is leverage (margin) trading?

Have more questions? Submit a request

Trading with leverage (also known as margin trading) means trading securities by putting down only a percentage of the total value of the position.

For example, a trade with a deposited amount of $1,000 and a leverage of x10 results in an exposure of $10,000. The margin is $1,000, which equals 10%.

Once you have deposited funds into your account, to trade with leverage you'll need to set the level of leverage for each asset class in 'My accounts' > 'Trade options' > 'Leverage'.

Leveraged trading can give you access to positions of a higher value than the funds in your account. This means that both profits and losses are magnified, making leveraged trading a high-risk endeavour.

Articles in this section

Was this article helpful?
0 out of 0 found this helpful