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What is leverage trading

Leverage trading is a strategy that allows traders to control a large position in the market using a relatively small amount of capital. This is made possible through borrowed funds provided by the broker. In essence, leverage multiplies your exposure to the market without requiring you to invest the full amount upfront.

At iFOREX, leverage can go as high as 400:1, depending on the instrument. That means for every $1 you invest, you can open trades worth up to $400. For example, with an initial investment of just $500, you could open a position valued at up to $200,000. This enables you to potentially benefit from even small market movements.

Investment		Leverage		Max deal size
$500	X	400	=	$200,000

However, it’s important to understand that while leverage can amplify gains, it also increases potential losses. Since your exposure is magnified, even minor price changes can significantly affect your position. That’s why responsible leverage use and risk management tools—like stop-loss orders and real-time monitoring—are essential.

Remember: iFOREX offers Negative Balance Protection policy, so you can never lose more than your initial investment. No matter what happens, your account will never go into minus.