What is leverage?

Leverage is a ratio between the trader’s own funds and borrowed funds, which a trader borrows from their broker. For example, 1:100 leverage means that for a transaction you must have a trading account with an amount that's 100 times less than the sum of the transaction.

Example: a trader chooses the 1:500 leverage and has 200 euros on their account. Leverage 1:500 allows them to buy a contract worth 100.000 euros.