Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a brok
lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of act
capital.
Capital Available 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Leverage 1 to 1 2 to 1 5 to 1 10 to 1 20 to 1 50 to 1 100 to 1
Position Size 10,000 20,000 50,000 100,000 200,000 500,000 1,000,000
How would your Account Balance change assuming you lost 30 points on 10 consecutive trades using leverage
Account Balance 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Loss # 1 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,970 9,940 9,850 9,700 9,400 8,500 7,000
Loss # 2 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,940 9,880 9,700 9,400 8,800 7,000 4,000
Loss # 3 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,910 9,820 9,550 9,100 8,200 5,500 1,000
Loss # 4 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,880 9,760 9,400 8,800 7,600 4,000 (2,000)
Loss # 5 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,850 9,700 9,250 8,500 7,000 2,500 (5,000)
Loss # 6 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,820 9,640 9,100 8,200 6,400 1,000 (8,000)
Loss # 7 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,790 9,580 8,950 7,900 5,800 (500) (11,000)
Loss # 8 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,760 9,520 8,800 7,600 5,200 (2,000) (14,000)
Loss # 9 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,730 9,460 8,650 7,300 4,600 (3,500) (17,000)
Loss # 10 (30) (60) (150) (300) (600) (1,500) (3,000)
Account Balance 9,700 9,400 8,500 7,000 4,000 (5,000) (20,000)
How much would your broker earn on 3 point spread assuming 10 consecutive trades using leverag
Capital Available 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Leverage 1 to 1 2 to 1 5 to 1 10 to 1 20 to 1 50 to 1 100 to 1
Position Size 10,000 20,000 50,000 100,000 200,000 500,000 1,000,000
Broker Spread Income 0 0 0 0 0 0 0
Spread # 1 3 6 15 30 60 150 300
Broker Spread Income 3 6 15 30 60 150 300
Spread # 2 3 6 15 30 60 150 300
Broker Spread Income 6 12 30 60 120 300 600
Spread # 3 3 6 15 30 60 150 300
Broker Spread Income 9 18 45 90 180 450 900
Spread # 4 3 6 15 30 60 150 300
Broker Spread Income 12 24 60 120 240 600 1,200
Spread # 5 3 6 15 30 60 150 300
Broker Spread Income 15 30 75 150 300 750 1,500
Spread # 6 3 6 15 30 60 150 300
Broker Spread Income 18 36 90 180 360 900 1,800
Spread # 7 3 6 15 30 60 150 300
Broker Spread Income 21 42 105 210 420 1,050 2,100
Spread # 8 3 6 15 30 60 150 300
Broker Spread Income 24 48 120 240 480 1,200 2,400
Spread # 9 3 6 15 30 60 150 300
Broker Spread Income 27 54 135 270 540 1,350 2,700
Spread # 10 3 6 15 30 60 150 300
Broker Spread Income 30 60 150 300 600 1,500 3,000
amount of money a broker will
$100 for every $1 of actual
10,000 10,000
200 to 1 400 to 1
2,000,000 4,000,000
ve trades using leverage
10,000 10,000
(6,000) (12,000)
4,000 (2,000)
(6,000) (12,000)
(2,000) (14,000)
(6,000) (12,000)
(8,000) (26,000)
(6,000) (12,000)
(14,000) (38,000)
(6,000) (12,000)
(20,000) (50,000)
(6,000) (12,000)
(26,000) (62,000)
(6,000) (12,000)
(32,000) (74,000)
(6,000) (12,000)
(38,000) (86,000)
(6,000) (12,000)
(44,000) (98,000)
(6,000) (12,000)
(50,000) (110,000)
e trades using leverage
10,000 10,000
200 to 1 400 to 1
2,000,000 4,000,000
0 0
600 1,200
600 1,200
600 1,200
1,200 2,400
600 1,200
1,800 3,600
600 1,200
2,400 4,800
600 1,200
3,000 6,000
600 1,200
3,600 7,200
600 1,200
4,200 8,400
600 1,200
4,800 9,600
600 1,200
5,400 10,800
600 1,200
6,000 12,000