---
title: What is Leverage?
description: Leverage is a mechanism that enables you to trade without putting up the full amount of the necessary capital. When trading with Leverage you only need a fraction of the total value of your position, the rest is effectively lent…
url: "https://ms.wmmarkets.com/knowledge-base/trading/what-is-leverage/"
updated: "2024-10-09"
category: Trading
---

# What is Leverage?

Leverage is a mechanism that enables you to trade without putting up the full amount of the necessary capital. When trading with Leverage you only need a fraction of the total value of your position, the rest is effectively lent to you. Trading using leverage is sometimes called “margin trading”.