Leverage is a key feature of CFD trading and can be an effective tool for the trader. Leverage in financial markets is the ability to trade large amounts using a small amount of your real capital. Leverage facilitates the trader's progress so that he can trade with many times the size of his capital. For example, if the leverage is 1:100, this means that the trader can trade with 100 times the size of his trades.
This means that the trader has facilities that allow his trades to reach 100 times the original trade size, and this facility will be returned to the company immediately after the trade is closed, and the profit or loss realized from the trade will be calculated and added to or deducted from the original capital.
To clarify:
If your leverage is 1:500 and you want to trade GBP/USD at a price of 1.3570 with a value of 100,000, you will need a margin of $271 per 1 Lot.
Without 1:1 leverage, if you wanted to trade GBP/USD at a price of 1.3570 with a value of 100,000, you would need a margin of $135,744 for a 1 Lot contract.
Orbex offers leverage of up to 1:500 maximum.
To learn how leverage works, please visit the Trading Terms and Conditions : Leverage