Leverage provides a way to multiply your exposure to a financial instrument without owning a physical copy of that instrument. When trading using leverage, less capital is required compared to other methods of trading. Profits and losses are based on the size of the position, which can mean that the end result of a trade can be much more substantial than the initial outlay. Leverage trading is a form of leverage trading. The size required to open and maintain a position in an over-levered trade is called the margin. Leverage trading is called “margin trading.” When leveraging, a small increase in the price of the CFD will result in a greater increase in profit or loss.