The ratio that determines how large a position you can control with a given amount of capital (margin). In forex trading, leverage is often expressed like 50:1, 100:1, 500:1, etc. – meaning, for example, at 100:1 leverage you only need 1% of the trade size as margin. Higher leverage allows a small account to trade larger lots, amplifying both potential profits and losses. Brokers set a maximum leverage for accounts (e.g., 30:1 in EU for retail traders by regulation, higher in other regions). From a forex robot’s perspective, leverage determines the margin requirement for each trade. For instance, at 100:1 leverage, a 1 lot EUR/USD position (~$100,000) requires about $1,000 margin. If your EA’s strategy opens many positions or big lots, ensure the chosen leverage and account size can support it without hitting margin call. Always remember: while leverage can boost gains, it dramatically increases risk, so use it wisely.

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