Licensed Prop Firm
FinoTrader Blog & Tips Disclaimer: This page is for SEO and informational purposes only.

Futures broker leverage

The futures markets typically use high leverage. Leverage means that the trader does not need to put up 100% of the contract’s value amount when entering into a trade. Instead, the broker would require an initial margin amount, which consists of a fraction of the total contract value.

For example, if you had an account balance of $500 and leverage of 1:5, you would be able to take a position size of $2,500 ($500 x 5 = $2,500).

Whilst this does mean that you can control a position size larger than you would have been able to without leverage, it also means the risk is significantly greater. It is imperative that you have a clear understanding of leverage and how it works before trading with leveraged positions.

Not satisfied? 😀 Try the Licensed Prop Firm with
fair conditions! 👍
Trade our FinoTrader capital from $25k to $500k! 📈