⚖️ Margin vs Leverage: Understanding the Relationship and Risks
Margin and leverage are closely related but distinct concepts that affect risk and return.
🚀 What is Leverage?
Leverage allows you to control larger positions with less capital. For example, 10:1 leverage lets you trade R$10,000 with R$1,000. It amplifies both profits and losses.
📢 ANÚNCIO - Use o Ad Inserter
🛡️ What is Margin?
Margin (or collateral) is the amount you must keep with the broker as security for leveraged positions. If losses exceed margin, the broker may close your position (stop‑out).
⚠️ The Danger
Using high leverage without proper risk management can wipe out your account. Always use stop‑loss, limit exposure, and avoid maximum leverage.