// HOW-TO GUIDE
12 min READ
How to Use Leverage Without Blowing Your Account
In the UK, retail leverage is capped at 30:1 for major pairs. Even at this level, you can lose your entire account in minutes if you don't understand the math of margin.
01
Calculate "Notional" Value
Understand that a 1-lot position on EUR/USD is worth $100,000. Leverage is simply the ratio between that value and your deposit.
02
Never Trade Based on Margin
Just because you *can* open 10 positions doesn't mean you should. Always calculate your risk based on your total account balance, not your available margin.
Common Mistakes to Avoid
- /Over-leveraging to recover losses
- /Not understanding "Margin Calls"
The Drawdown Way
Our Risk Calculator does the leverage math for you, ensuring you never take a position that exceeds your risk tolerance.
Questions & Answers.
What is 30:1 leverage?
It means for every £1 in your account, you can control £30 worth of an asset.
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