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Leverage in trading is a powerful tool that allows traders to control positions larger than their initial capital by using borrowed funds from a broker. It amplifies both potential profits and losses, magnifying the impact of price movements on the trader's account. Leverage is represented as a ratio, indicating the multiple by which a trader's position size exceeds their invested capital. For example, a leverage of 10:1 means the trader can control a position size 10 times larger than their actual capital. While leverage can enhance trading opportunities, it also increases risk, requiring careful risk management and understanding of its impact on trading decisions.. Promoted by AxiTrader Ltd (company no. 25417 BC 2019) which is registered in St Vincent & the Grenadines. CFDs carry a high risk of investment loss. Not intended as investment advice. * Join the Axi Academy: https://axi.trade/3RmrVsj Learn more about financial markets and how to trade financial products, including Forex, gold, cryptos & shares. * Download FREE eBooks: https://axi.trade/3QimZ6r Whether you’re learning the fundamentals of Forex, discovering different strategies, or looking for expert trading tips, our eBook series will help improve your knowledge of the markets. * Ready to start trading? Open your free Axi account here: https://axi.trade/3cNkDPo Want to practice first? Try a Demo account here: https://axi.trade/3CWHuTn * Follow us on social Facebook: / axi Instagram: / axi_official Twitter: / axi_official LinkedIn: / 1824191 * Read our blog Forex trading for beginners: https://axi.trade/3RnhCUW 20 habits of successful forex traders: https://axi.trade/3D1ttE3 12 effective forex trading strategies for beginners: https://axi.trade/3D9lNPQ * Got questions? Talk to our Client Experience team: https://www.axi.com/int/contact-us * About Axi Axi is a global online FX and CFD trading company, trusted by 60,000+ ambitious customers in 100+ countries around the world. We help new traders, pro traders, trading businesses, banks, and financial organisations find the edge they need to achieve their financial goals through informed transactions made on the world’s financial markets. Trade your edge with Axi: ► A trusted partner ► Executional excellence ► Giving traders more ► Global strength. Local service * CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Axi is a trading name of AxiTrader Limited (AxiTrader), which is incorporated in St Vincent and the Grenadines, number 25417 BC 2019 by the Registrar of International Business Companies, and registered by the Financial Services Authority, and whose address is Suite 305, Griffith Corporate Centre, PO Box 1510, Beachmont Kingstown, St Vincent and the Grenadines. AxiTrader is 100% owned by AxiCorp Financial Services Pty Ltd, a company incorporated in Australia (ACN 127 606 348). Over-the-counter derivatives are complex instruments and come with a high risk of losing substantially more than your initial investment rapidly due to leverage. You should consider whether you understand how over-the-counter derivatives work and whether you can afford to take the high level of risk to your capital. Investing in over-the-counter derivatives carries significant risks and is not suitable for all investors.