Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

THIS Is The Dark TRUTH About Trading Leverage (MUST WATCH)🚨

14 Nov 2025 · 1 min

Watch on YouTube

1:00

Kardec Trader explains why leverage limits vary across markets. Forex offers 20:1 to 500:1, but futures typically allow 5-10:1 and stocks around 4:1, with volatile tickers like GME and AMC getting lower margins. Liquidity and price stability determine how much leverage brokers will actually give you.

Questions this video answers

"20 to 1 leverage, 500 to 1" (speaker's claim).

"10 to 1 margin or something like that of say 5 to 1" (speaker's claim).

"Basically 4 to 1 on most brokers" (speaker's claim).

Chapters

A lot of beginner traders, they will look at Forex because of the leverage. When you look at forex, it's like 20 to 1 leverage, 500 to 1. That is insane. But do you have any edge? You have the leverage 501. Why do you have the leverage? Because it's very efficient. There are a lot of good forex traders because it's very easy to size up on it, but only very select forex traders. It's very difficult to make a living trading Forex because it only moves 1 to 2%. But you can size up exponentially because of all the volume in the forex industry compared to futures. When you trade futures, 10 to 1 margin or something like that of say 5 to 1 margin or 20 to 1 margin stock stocks, it's basically 4 to 1 on most brokers. And that also depends on the stock. Like if I, if for example I was trading GME or AMC in 2021, it won't even be 4 to 1 because it's very inefficient. It's going to be lower than that. But if I'm trading stocks like Apple, Microsoft, they don't move a lot on a daily basis. Even in stocks. The leverage is going to keep coming down as the stock becomes more inefficient. If the stock is moving very big, the margin is going to come down because no one is giving you 500 to 1 margin. If they know that you are in risk of losing their money, they want to make money.