How does leverage work?

Leverage is a financial tool that allows traders to control larger positions with a smaller amount of capital. For example, with 100x leverage, $1,000 can be used to trade a position worth $100,000. This significantly amplifies potential profits but equally magnifies potential losses. Therefore, risk management is crucial when using leverage, and stop-loss settings should always be considered. MIM provides reasonable leverage levels depending on clients’ capital size, ensuring a stable trading environment.