Can you give an example of trading with leverage?

Sure. Suppose the EUR/USD rate is 1.3, and your margin is 0.2%. You want to buy one standard lot — that’s 100,000 euros, worth $130,000.

At 0.2% margin, your broker requires $260 from your account. This is your down payment. The broker lends you the rest to open the position.

When you close the trade, you get back your margin plus any profit or loss and this what is leverage trading.

What risks does leverage bring?

High leverage means both profits and losses are amplified. Can you afford large losses? Using leverage without a clear strategy can be dangerous. Always manage risk carefully.

Before using high leverage, define your stop-loss levels and stick to your risk management rules. Never risk more than you can afford to lose, no matter how confident you feel about a trade.

At PROP365, we offer flexible leverage options that suit both beginners and experienced traders. Use leverage wisely, and let it work as a tool — not a trap — to scale your trading potential. Leverage is a double-edged sword — respect it, and it becomes your ally. Master it, and you'll unlock new levels of opportunity in the forex markets with PROP365.