What is leverage? February 15, 2023 13:29 Updated Leverage is a way to make larger investments than their initial risk capital will allow. For example: A trader can use 1:400 leverage and can control a $400,000 trade with $1000. Related articles What does Error 1015 mean? Can I deposit and withdraw during the weekend? Is the leverage on my account the same on all products? What is free margin? Can I change the leverage on my account?