Risk
Leverage and Risk Management for CFD Traders
2026-04-27
Leverage allows traders to control a larger position with a smaller amount of capital, but it magnifies both gains and losses proportionally.
Retail leverage caps under MiFID II/ESMA rules are designed to reduce the risk of rapid, large losses for less experienced traders.
Position sizing, stop-loss discipline and an understanding of margin requirements are essential regardless of the leverage available to you.