How do leverage and risk work?
Leverage multiplies both gains and losses. Use it deliberately, because a competition can be won or lost fast.
Updated May 29, 2026
Leverage lets a position control more than your balance, which multiplies both gains and losses. A bold, well timed trade can top the leaderboard, and an over leveraged one can be liquidated in seconds.
A stop loss can close a position before a loss runs too far, and a take profit can lock in a gain. The leverage available depends on the instrument you trade.
Because your downside is capped at the entry fee, some traders push leverage hard to chase the top prize. That is a valid strategy, just go in knowing the trade off.