Leverage is a trading mechanism investors can use to increase their exposure to the market by allowing them to pay less than the full amount of the investment. ... The trader uses credit provided by a broker so that he or she only has to pay a percentage of the value of the transaction.

Is leverage trading a good idea?

Leverage trading can be good because it lets investors with less cash increase their buying power, which can increase their returns from successful investments.

What does 5x leverage mean?

Selecting 5x leverage does not mean that your position size is automatically 5x bigger. It just means that you can specify a position size up to 5x your collateral balances.