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Glossary

Leverage

A mechanism that controls larger exposure with a smaller deposit (margin). It scales profits and losses proportionally — and it demands risk management.

Definition

Leverage lets you control larger market exposure with a smaller deposit (margin). It magnifies both the potential profit and the loss in PLN relative to the price move — it is not “free capital”.

Example

On forex, with 10,000 PLN of capital you open a 0.5 lot EUR/USD position. Thanks to leverage and margin, the broker requires only a fraction of the notional value as a deposit, but a move of a few dozen pips against you quickly eats a large part of the account — which is why you cap risk as a percentage per trade instead of using “the maximum leverage on the offer”.

Anti-example / common mistake

Leverage of 1:30 or 1:500 is not a strategy goal. A common mistake: confusing the maximum leverage from an advert with the position size that follows from a 1–2% risk rule and the distance to your stop-loss.

Leverage and margin

Structure sources

Materials behind this definition — documentary sources, not recommendations.

Who writes this and how we check it

The materials are written and verified by Redakcja Kurs Tradera — the rules are described on about the site: every number has a source, and we show gaps openly. Report a factual error via contact — corrections are described in the content.

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