You want to rent a $4,150 bike. The shop asks for 1% up front: $41.50, and you get it back. That deposit is your margin, and a big bike for a small deposit is leverage. Rent more bikes (a bigger lot) and you pay more deposits, so less cash is free. Drag the slider to see it.

A 0.01 lot of gold is worth about $4,150, far more than a $1,000 account. Leverage is what makes the trade possible.

Leverage lets you borrow from your broker. At 1 to 100 you put up 1 percent of the trade and the broker covers the other 99 percent. It does not make you win more often: it makes each result, win or loss, bigger.

The part you put up is called margin: about $41.50 for this trade. Your broker holds it while the trade is open. It is a deposit, not a fee, and it comes back when the trade closes. The rest of your money stays free. In MT5 you will find these on the Trade tab as Margin and Free margin.

A bigger lot needs more margin. A 0.20 lot needs about $830, which leaves only $170 free. With so little cushion, one small move against you and the broker closes your trade.

Leverage is borrowed power. Margin is the deposit it needs. Keep your trades small so you always have room for a loss. Your broker sets the leverage, so check yours. Figures are illustrative.