[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-term:leverage":3,"glossary-all":19},{"slug":4,"category":5,"title":6,"body":7,"meta_desc":8,"related":9},"leverage","fundamentals","Leverage","Leverage lets a trader control a large position with a relatively small amount of capital, expressed as a ratio such as 30:1 or 1:500. With 100:1 leverage, for instance, $1,000 of margin can control a $100,000 position.\n\nLeverage amplifies both potential profits and potential losses in equal measure, which is why regulators like the FCA and ESMA cap retail leverage — often at 30:1 for major currency pairs — to limit trader risk.","Using borrowed capital to control a larger trading position than your own funds alone would allow — amplifying both gains and losses.",[10,13,16],{"slug":11,"title":12},"margin","Margin",{"slug":14,"title":15},"margin-call","Margin Call",{"slug":17,"title":18},"position-sizing","Position Sizing",[20,23,26,27,28,31,34,38,42,45,48,49,52,55,58,62,65,68,69],{"slug":21,"category":5,"title":22},"pip","Pip",{"slug":24,"category":5,"title":25},"spread","Spread",{"slug":4,"category":5,"title":6},{"slug":11,"category":5,"title":12},{"slug":29,"category":5,"title":30},"lot","Lot",{"slug":32,"category":5,"title":33},"bid-ask","Bid\u002FAsk",{"slug":35,"category":36,"title":37},"slippage","trade-mechanics","Slippage",{"slug":39,"category":40,"title":41},"stop-loss","risk-management","Stop-Loss",{"slug":43,"category":40,"title":44},"take-profit","Take-Profit",{"slug":46,"category":40,"title":47},"drawdown","Drawdown",{"slug":14,"category":40,"title":15},{"slug":50,"category":36,"title":51},"swap-rollover","Swap \u002F Rollover",{"slug":53,"category":36,"title":54},"going-long-short","Going Long \u002F Short",{"slug":56,"category":36,"title":57},"cfd","CFD (Contract for Difference)",{"slug":59,"category":60,"title":61},"ecn-vs-market-maker","brokers-regulation","ECN vs Market Maker",{"slug":63,"category":60,"title":64},"regulation","Regulation (FCA, CySEC, ASIC)",{"slug":66,"category":40,"title":67},"negative-balance-protection","Negative Balance Protection",{"slug":17,"category":40,"title":18},{"slug":70,"category":5,"title":71},"volatility","Volatility"]