Trading Blitz provides you with 5x leverage. Leverage lets you control a larger position than your account balance would otherwise allow. Margin is the amount of your own balance required to open and hold that position. Understanding how these work is one of the most important risk management skills in trading, and practicing with leverage in a simulator is far less painful than learning the hard way with real money.
A Simple Example
If you have a $10,000 virtual balance and use 2x leverage, you can take a position worth $20,000 (i.e. your Buying Power). Your margin, the amount held as collateral, is your $10,000. If the trade moves in your favor, your gains are calculated on the full $20,000 position. If it moves against you, your losses are also calculated on the full $20,000 position.
It cuts both ways. Leverage amplifies gains and losses equally.
How Leverage Is Set in Trading Blitz
When placing a trade, you can adjust your leverage level before confirming the order. Higher leverage means a larger position relative to your balance, and greater risk if the trade moves against you.
Going Bust (i.e. Margin Calls)
If a leveraged position moves far enough against you that your remaining balance can no longer support the required margin, your position may be closed automatically and you'll "Go Bust". A popup will appear for you to reset your balance. Alternatively, if your account balance falls below $25,000, you can reset your balance from the Dashboard.
Should You Use Leverage?
Leverage is a tool, not a strategy. Used carelessly, it can wipe out a balance in a single trade. A common starting point for new traders is to practice without leverage first, focus on reading charts and building a positive win rate before adding leverage into the equation.
The goal of practicing in a simulator is to develop habits you can rely on under pressure. Using leverage recklessly in practice tends to build reckless habits, not profitable ones.