LESSON 04 ~9 MIN · AT YOUR OWN PACE
Protect your money first
Understand risk, leverage and scams before you move forward.
STEP 2 OF 4
Leverage and Margin
Leverage lets you take a larger market exposure from a small deposit. Margin is the deposit you set aside for that position; it is not a guarantee of a maximum loss. Both Profit and Loss can grow quickly compared with your deposit.
AN EXAMPLE
Say a deposit of 100 gives you an exposure of 1,000. If the price moves 5% against you, you lose 50 on that exposure: half of your deposit, before fees. A margin close-out can happen even earlier.
RememberLeverage is not “extra free money”. Depending on the product, you can also lose more than your deposit.
Sources and further reading
Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.
CFTC · Forex and risk (opens in a new tab)FINRA · Day trading risks (opens in a new tab)Investor.gov · Crypto risks (opens in a new tab)