Leverage & Margin 101: A Beginner's Guide Before Big News
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Leverage lets you control a larger position with a smaller deposit, called margin. For example, 1:30 leverage means you only need $1,000 in margin to open a $30,000 position — but losses scale up just as fast as gains.
Ahead of high-impact events like an ECB rate decision, spreads often widen and prices can gap quickly. Beginners should understand that higher leverage amplifies both outcomes, not just favorable ones.
A simple rule: never use leverage you don't fully understand. Start small, know your margin requirements, and always check your broker's specific leverage limits before entering a position.