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What is leverage in CFD forex trading?
What is leverage in CFD forex trading?
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Written by Online Support
Updated over a week ago

What is leverage in CFD forex trading?

When trading forex CFDs, leverage allows traders to control a larger exposure with less of their own funds. The difference between the total trade value and the trader’s margin requirement is usually ‘borrowed’ from the forex broker. Traders can usually get more leverage on forex than other financial instruments, meaning they can control a larger sum of money with a smaller deposit.

Since forex CFDs are traded on margin, you only have to deposit a percentage of the full amount you wish to trade. Our margins start from 3.33%, which could be referred to as 30:1 leverage, as the value of the full position would be 30 times the value of the deposit required to open the trade. When trading on margin it's important to remember that your profits or losses are based on the full value of the position.​

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