What is Leverage?

Leverage is a key feature of Forex and CFD trading. It determines the margin you must hold in your trading account to open and maintain a position. In simple terms, leverage allows you to control a position larger than your initial deposit.

However, higher leverage does not only lower the margin requirement — it also increases risk, as it magnifies both potential profits and potential losses. Even small price movements can lead to rapid and significant losses.

How does leverage work?

You have a trading account with GO Markets with a balance of $10,000. If you have a trading leverage of 30:1 and wish to use $1,000 on one single transaction as the margin, then you will have an exposure of $30,000 in your base currency ($1,000) = 30 × $1,000 = $30,000 (trade value). The concept here is that GO Markets have temporarily given you the necessary credit to make the transaction you are interested in making. Without this margin, you would only be able to buy or sell transactions of $1,000 at a time.

Important: While leverage allows you to potentially increase profits from a relatively small investment, it also magnifies losses. Even small market movements against your position can lead to rapid and significant losses, potentially exceeding your initial margin if not carefully managed.

GO Markets’ Leverage Rates

Asset Class	Maximum Leverage (Retail Clients)
Major currency pairs	30:1
Non-major currency pairs, gold, major indices	20:1
Commodities (except gold), minor indices	10:1
Individual equities & other reference values	5:1
Cryptocurrencies	2:1

These leverage limits are designed to protect retail clients from excessive risk. Always ensure you understand the risks before trading.