Leverage & Margin

Borrowed size, required margin and how accounts blow up.

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1. 00:00Leverage & Margin. Borrowed size, required margin and how accounts blow up.
2. 00:05Leverage lets you control a large position with a small deposit. 1:100 leverage means $1,000 of margin controls $100,000 of currency.
3. 00:13Leverage multiplies profit and loss identically — it is a size tool, not an edge.
4. 00:19Reference table: Leverage, Margin for 1 standard lot, Loss that wipes that margin.
5. 00:24Note: A margin call happens when equity falls below required margin; the broker then closes positions (stop out). Professionals rarely use more than a few percent of available leverage.

Leverage lets you control a large position with a small deposit. 1:100 leverage means $1,000 of margin controls $100,000 of currency. Leverage multiplies profit and loss identically — it is a size tool, not an edge.