What Is Leverage in Forex?
Author: WINPROFX Education Team · Reviewed by: WINPROFX Compliance Team
This article is for educational purposes only and does not constitute investment advice, financial advice, or a recommendation to trade.
Definition
Leverage allows traders to control a larger position with a smaller amount of capital. It is expressed as a ratio (e.g., 1:100), meaning a small deposit (margin) controls a larger trade size.
How Leverage Affects Risk
Leverage amplifies both potential gains and losses. A small adverse price move can result in significant losses relative to your deposited margin.
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Risk warning:
Trading forex and CFDs involves significant risk and may not be suitable for all investors. Clients should understand the risks before trading.
Read full risk warningLast reviewed: 2 June 2026 · Reviewed by: WINPROFX Compliance & Operations Team
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