Minimal leverage

The Ratio between Minimal Lot Size, Trade Size and Leverage

Fundamentally, the minimal lot size for a trade is $10,000, thus the leverage limitations are set according to the amount you choose to trade:

Trade Size	Minimal Leverage	Lot
25	400	10,000
50	200	10,000
100	100	10,000

The advantage of trading with Leverage is that while your profits potential is virtually infinite, at eToro the maximum amount you can lose on a trade is limited to the initial investment of the trade. (With the rare exception of extreme market conditions) Once the rate drops below the rate covered by your investment, the trade is automatically closed. That is done through an automatic Stop Loss – explained in the next chapter.

Remember, Leverage can be a trader's best friend when used carefully, and his worst enemy when used recklessly. It is a great tool for increasing profits, in fact private traders rarely trade without it, but you should always keep in mind that the higher the leverage is – the higher the risk level involved.

Now that you're equipped with most of the basic tools, you can open your first trade!