Leverage is translated from the English word “leverage” and it was the forex market that gave us leverage. We can say that each forex company offers different leverage ratios. According to the leverage ratio set by the companies, traders choose the leverage ratio and can start trading. Considering that 100% leverage is offered, he can trade with up to 100 times the amount of his money. Since there are different ratios in each forex company, one may offer 100 ratios while another may even offer 1000 ratios. For information about Forex, see the article What is Forex? Traders may want to calculate leverage when trading. In this case, they should examine the position size and the amount of collateral. The leverage ratio is calculated by dividing the position size by the margin amount. For example, if the position size is 100,000 TL and the margin amount is 1000 TL, the leverage ratio is 100. To better understand leverage, we can give an example of leveraged trading. Let’s assume that we are trading in USDTRY, that is, the dollar TL parity and the dollar is 7 TL. In this case, if you want to buy 100 dollars, you will have to pay 700 TL. Considering that the leverage is also 100, how many dollars can be bought with 700 TL. 100 X 100 = 10,000 dollars can be bought. You can get 10.000 dollars by giving 700 TL collateral.