Leverage represents a margin trading ratio that will allow you to open bigger lot positions with very little equity. In Forex leverage can be very high, sometimes as much as 500:1, which means that a margin deposit of just $1000 could control a position size of $500,000. Leverage has a direct effect on the capital in your trading account.

Part of our multimedia library, learn in this video what is leverage in Forex, how it works and how to use it safely in your trading strategy.

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If you would like to know more about leverage in Forex trading, potential Risk and Reward of using higher leverage, what is a margin call and how to avoid it, please read our complete article What is Leverage in Forex and How to Use It.

CBFX Margin Calculator

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Use this handy Forex margin calculator to know exactly the percentage of funds required to open a trading position based on the available leverage offered by your broker.