FXpips Academy · Forex Foundations · free
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MODULE 2 · LESSON 3 OF 3

Leverage and margin

Leverage lets you control a large position with a smaller deposit, called margin. At 1:100 leverage, $1,000 of margin controls a $100,000 position.

Leverage magnifies gains and losses equally, so treat it as a tool to handle carefully, not a number to maximise. Your real exposure is set by your position size and stop loss, not by the leverage your broker offers.