Definition
What is Leverage?
Leverage is the ratio between the size of a position and the margin needed to open it; with 1:100, $1,000 of margin controls a $100,000 position.
Leverage is a tool that reduces how much margin a position needs. It does not decide how much you can lose — your stop loss distance and position size do.
Higher leverage lets you open larger positions with the same equity, which is exactly why it must be combined with strict position sizing.
A useful rule: decide the risk per trade in dollars first, then calculate the lot size from the stop distance. Leverage only has to be high enough to allow that position.
Example
A 1-lot EURUSD position is worth about $108,000. With 1:100 leverage it needs roughly $1,080 of margin.
At a prop firm
Every Axora Funded account trades with 1:100 leverage.
Frequently asked questions
Is higher leverage better for a challenge?
No. It only lowers the margin required; passing depends on risk per trade and discipline.
What leverage does Axora Funded offer?
1:100 on every challenge and funded account.