How does leverage work with forex brokers and what levels are common?

Leverage lets you control a larger position with a smaller amount of margin, multiplying both potential gains and losses. For example, with 1:30 leverage, a deposit of 1,000 units of your currency allows you to control a 30,000‑unit position. In many tightly regulated regions, leverage for retail forex clients is capped around 1:30 on major pairs and lower on riskier instruments, while professional clients may access higher levels. Offshore or lightly regulated brokers may offer 1:200, 1:500, or even more, but such high leverage can quickly wipe out an account during normal volatility. It is wise to treat leverage as a maximum, not a target, and size positions so that a reasonable stop‑loss does not risk more than a small portion of your account.