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Leverage allows you to control a larger position with a smaller amount of capital. It is expressed as a ratio — for example, 1:500 means $1 of margin controls $500 in the market. While leverage amplifies potential profits, it equally amplifies potential losses. The amount of leverage available depends on the broker, account type, and instrument. At GCC Brokers leverage is 1:100 by default, and up to 1:500 on Standard and Pro or up to 1:200 on Zero, on approval; it can be lower on some instruments, and margin on some instruments is tiered by position size (see the margin schedule).
With 1:500 leverage, 1 standard lot of EUR/USD (€100,000, about $110,000 at 1.1000) needs about $220 of margin. If your account holds only that $220, a 0.5% move in your favour earns about $550. A move against you of about 0.16% (roughly $176) takes your margin level to 20%, the stop-out level, and your positions start to close. Leverage sets how large a position you can open, not how much you can afford to lose. Prices in this example are illustrative.
