Leverage Exness

What is Leverage in Trading?

Leverage in trading refers to the ability to control a larger position in the market using a smaller amount of capital. It is essentially a loan provided by the broker, allowing traders to open positions that exceed their account balance. Leverage is expressed as a ratio, such as 1:100, 1:500, or even 1:Unlimited, indicating how much larger a position you can control compared to your initial investment.

For example, with a 1:100 leverage ratio, a trader with $1,000 can control a position worth $100,000. This amplification allows traders to capitalize on small price movements, potentially leading to significant profits. However, leverage is a double-edged sword—it magnifies both gains and losses, making risk management critical. Exness, a leading forex and CFD broker, offers some of the most competitive leverage options in the industry, ranging from 1:2 to 1:Unlimited. These flexible options cater to traders of all experience levels, from beginners testing the waters to seasoned professionals executing high-frequency strategies.