Simply put: the leverage effect is a multiplier of your trading results. Leverage uses borrowed funds to increase one's trading position beyond what would be available from their cash balance alone.
For example, if your leverage is 1:30, instead of a 1% profit or loss, you can do a 30% profit or loss in a single day.
For example:
Leverage: Up to 1:30 (requires a 3.33% margin) for retail traders
Forex contract size: 100 000 EUR = 1 lot in EUR
Required Margin for the retail trader, 3.33%: 3.33% x 100 000 euros = 3 333 EUR
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