Understanding Leverage Trading
Learn how leverage can amplify your trading potential while understanding the associated risks
What is Leverage?
Leverage is a trading mechanism that allows you to control a larger position size with a smaller amount of capital. It's essentially borrowing money from your broker to increase your trading potential.
For example, with 100:1 leverage, you can control a $100,000 position with just $1,000 in your account. This means that a 1% move in the market can result in a 100% change in your account balance.
At IkasFX, we offer flexible leverage options up to 1000:1, allowing you to choose the level that best suits your trading strategy and risk tolerance.
While leverage can significantly increase your profit potential, it also amplifies the risk of losses. It's crucial to understand how leverage works and implement proper risk management strategies.
Low Leverage (1:1 - 50:1)
Conservative approach for beginners
- • Lower risk exposure
- • Suitable for beginners
- • More stable account balance
- • Longer-term positions
Medium Leverage (100:1 - 500:1)
Balanced approach for experienced traders
- • Moderate risk and reward
- • Popular choice for most traders
- • Good balance of opportunity and safety
- • Suitable for various strategies
High Leverage (1000:1)
Maximum potential for professional traders
- • Maximum profit potential
- • Higher risk exposure
- • Requires expert knowledge
- • Strict risk management needed
Risk Management with Leverage
Essential strategies to protect your capital while using leverage
Position Sizing
Never risk more than 1-2% of your account per trade
Stop Losses
Always use stop losses to limit potential losses
Diversification
Spread risk across different instruments and markets
Education
Understand leverage before using it in live trading
Leverage Calculator Example
See how different leverage levels affect your trading potential
Account Balance
Your initial capital
Leverage Used
Maximum position size
Position Size
Total trade value
Result: With $1,000 and 100:1 leverage, you can control a $100,000 position. A 1% market move = $1,000 profit/loss (100% of your account).
Start Trading with Leverage
Choose your preferred leverage level and begin your trading journey
