1. What is 1:30 Leverage?

1:30 leverage means that for every unit of capital you have, you can control 30 units in the market. This amplifies both potential gains and losses.

2. How Does the Calculator Work?

The calculator uses the simple leverage formula:

Where:

• \( Capital \) — Your initial investment amount
• \( 30 \) — The leverage multiplier

Explanation: The formula calculates the total market exposure you can control with your capital using 1:30 leverage.

3. Importance of Leverage Calculation

Details: Understanding your effective capital is crucial for risk management, position sizing, and meeting margin requirements in leveraged trading.

4. Using the Calculator

Tips: Enter your capital amount in the base currency. The calculator will show your total effective capital with 1:30 leverage applied.

5. Frequently Asked Questions (FAQ)

Q1: What does 1:30 leverage mean?
A: It means you can control $30 in the market for every $1 of your own capital.

Q2: Is 1:30 leverage risky?
A: Yes, leverage amplifies both gains and losses. A small market move against your position can result in significant losses.

Q3: What markets commonly use 1:30 leverage?
A: This leverage ratio is common in forex trading for retail traders in many jurisdictions.

Q4: How is leverage different from margin?
A: Leverage is the ratio of borrowed funds to equity, while margin is the amount of equity required to open a leveraged position.

Q5: Can I lose more than my initial capital with leverage?
A: With most regulated brokers, you can't lose more than your initial capital due to automatic liquidation mechanisms.