Options & derivatives

Leverage (derivatives)

In derivatives, leverage lets you control a large exposure with a small outlay, amplifying both gains and losses.

It is the main appeal of CFDs, futures and options, but also their greatest danger: a small adverse move can wipe out the stake, even trigger a margin call. Leverage demands flawless risk management.

Example

At 20:1 leverage, a 5% move in the underlying doubles or wipes out your stake.

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