Forex Basics
Oct 26, 2026 6 min read
Forex Leverage Explained: Lot Size, Spread and Margin, and How They Decide Your Risk
Forex leverage, lot size, spread and margin are four words for one system: the lot size sets how much currency you control, the margin is the deposit the broker holds against it, the leverage is the ratio between the two, and the spread is what you pay to open. This guide explains each, shows the arithmetic that connects them, and makes the case that leverage should decide nothing about your position size, because the stop and the risk per trade already have.
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