Leverage and margin

The essentials

Leverage determines how much exposure a given amount of collateral can support. A USD 10,000 exposure at 30:1 requires approximately USD 333.33 initial margin, before product-specific adjustments. Margin is collateral, not a fee.

Put it in context

A 1% adverse move on USD 10,000 exposure is roughly USD 100 before costs, regardless of whether the initial leverage allowance is 10:1 or 30:1. Using less margin does not make that same position less risky.

Before you act

Read maintenance-margin and liquidation rules. A broker can close positions when equity is insufficient; protections vary by jurisdiction and account type.

Further reading: CFTC forex education, BLS CPI, Federal Reserve monetary policy. Reviewed 6 October 2026.