What is leverage?
The leverage is a ratio between the trader’s own funds and borrowed funds, which a trader borrows from his broker. 1:20 leverage means that for a transaction you must have a trading account with amount 20 times less than the sum of the transaction.
Example: a trader chooses the 1:20 leverage and has 200 euros on his account. Leverage 1:20 allows him to buy a contract worth 4,000 euros.