Leverage
Leverage allows traders to control a larger position than their account balance would normally permit, by borrowing from their broker. 10:1 leverage means $1,000 controls a $10,000 position. Leverage amplifies both gains and losses.
Why it matters for traders
Leverage is a double-edged sword — it magnifies returns but also magnifies losses. Improper use of leverage is one of the most common causes of account blowups. Leverage makes position sizing and stop loss placement even more critical.
How Tradapt tracks this
When importing leveraged trades, Tradapt calculates performance metrics on actual P&L rather than notional value, giving you an accurate view of real account impact.
Track this free in TradaptFrequently asked questions
How much leverage should I use in trading?
Most professional traders use significantly less than their maximum allowed leverage. A common guideline is to size positions so that your maximum risk per trade is 1–2% of account equity, regardless of the leverage your broker provides.