What is Leverage?

Leverage is a trading service that lets you trade more of an asset than what your deposited amount is worth.

Leverage is like a boost for your trades — it lets you control a bigger position with a smaller amount of money.

For example, $1,000 on a Disney stock with a leverage of 1:10 allows you to invest a value of $10,000.
Leverage is a great tool to increase your potential profit, but also your potential losses. It can be a double-edged sword, and we advise all our users to keep their risk in check at all times!

Keep in mind that when you trade on leverage, the difference between your deposited amount ($1,000) and your leveraged amount ($20,000) is a loan provided by your broker. That’s why, if you keep your leveraged position open for over 24 hours, you pay what is known as “overnight fees”.