{"id":307,"date":"2025-08-20T16:30:22","date_gmt":"2025-08-20T15:30:22","guid":{"rendered":"https:\/\/7zeros.com\/?page_id=307"},"modified":"2025-08-20T16:30:22","modified_gmt":"2025-08-20T15:30:22","slug":"leverage","status":"publish","type":"page","link":"https:\/\/7zeros.com\/?page_id=307","title":{"rendered":"Leverage"},"content":{"rendered":"\n<p>To open a <strong>0.01 lot (1,000 units)<\/strong> trade, the full <strong>1,000 EUR<\/strong> does not need to be used by the trader. This is where <strong>leverage<\/strong> is used<strong>.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Example with leverage:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Open a <strong>0.01 lot EURUSD<\/strong> (1,000 EUR position).<\/li>\n\n\n\n<li>Broker leverage = <strong>1:100<\/strong>.<\/li>\n\n\n\n<li>Margin required = 1,000 \u00f7 100 = <strong>10 EUR<\/strong>.<\/li>\n\n\n\n<li>So only <strong>10 EUR<\/strong> is needed in a trading account to control the 1,000 EUR trade.<\/li>\n<\/ul>\n\n\n\n<p>If leverage were 1:30 (common in EU-regulated brokers):<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Margin = 1,000 \u00f7 30 \u2248 <strong>33.3 EUR<\/strong>.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Key takeaway:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The full 1,000 EUR<\/strong> is not needed \u2014 only need the <strong>margin<\/strong>, which is much smaller thanks to leverage.<\/li>\n\n\n\n<li>But leverage is double-edged &#8211; while it reduces the capital needed, it also magnifies both profits and losses.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To open a 0.01 lot (1,000 units) trade, the full 1,000 EUR does not need to be used by the trader. This is where leverage is used. Example with leverage: If leverage were 1:30 (common in EU-regulated brokers): Key takeaway:<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-307","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/7zeros.com\/index.php?rest_route=\/wp\/v2\/pages\/307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/7zeros.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/7zeros.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/7zeros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/7zeros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=307"}],"version-history":[{"count":1,"href":"https:\/\/7zeros.com\/index.php?rest_route=\/wp\/v2\/pages\/307\/revisions"}],"predecessor-version":[{"id":309,"href":"https:\/\/7zeros.com\/index.php?rest_route=\/wp\/v2\/pages\/307\/revisions\/309"}],"wp:attachment":[{"href":"https:\/\/7zeros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}