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High Leverage Risks: Avoiding the Margin Call TrapRisk Management

High Leverage Risks: Avoiding the Margin Call Trap

Why 1:500 leverage is a trap. Understanding Free Margin, Margin Calls, and why professional traders rarely use more than 1:10.

Lisa Martinez - Author
Written ByLisa MartinezCFD & Derivatives Analyst
James Wilson - Fact Checker
Fact Checked ByJames WilsonRisk Management Specialist
Last UpdatedDec 06, 2026

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Lisa Martinez

Lisa Martinez

CFDs • Options • Derivatives

About the Author

Lisa began her career on the trading floor in London dealing in options and futures. With expertise in complex derivative products, she evaluates CFD brokers and educates traders on hedging strategies and product offerings.

CFD & Derivatives Analyst — Everything you find on BrokerAnalysis is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback.

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