Leverage and Margin

Leverage lets you control a large position with a relatively small amount of money. With 100:1 leverage, $1,000 can control a $100,000 position.

Margin

Margin is the deposit your broker holds to open that position. If the market moves against you far enough, you may get a margin call or have positions closed automatically.

Respect it

Leverage cuts both ways: it amplifies profits and losses. Beginners should use low leverage and never risk money they can't afford to lose.