Leverage Explained: How 24× Changes Everything
Leverage multiplies exposure, returns and losses by the same factor. A clear explanation of margin, amplification and what 24× really means for your account.
Leverage lets you control a position larger than your deposit. It is the reason small accounts can produce meaningful returns — and the reason they can be wiped out.
Margin in one paragraph
The broker sets aside a fraction of the position value as margin. At 1:500, controlling $50,000 of gold requires $100 of margin. The remaining exposure is borrowed, and the profit or loss is calculated on the full $50,000.
The symmetry nobody mentions
| Underlying move | 1× | 24× |
|---|---|---|
| +1.16% | +1.16% | +27.8% |
| -0.86% | -0.86% | -20.6% |
| -4% | -4% | -96% |
How to think about amplification sensibly
- Size from the amplified downside, not the amplified upside
- Never amplify capital you may need within the lock-in period
- Recognise that amplification changes the account's risk profile, not the strategy's win rate
- Read the Risk disclosure before choosing an amplification level
The amplified projection engine — with its explicit downside figure — is on Performance.
Frequently asked questions
It means position sizes are scaled so that the underlying strategy's percentage moves are multiplied by roughly 24 on your account — in both directions.
Higher leverage is not inherently bad, but it makes position sizing far less forgiving. The same strategy at higher leverage has a materially higher probability of a large drawdown.
Sonic AI Insights produces practical educational content about copy trading, automated trading and gold markets, written in plain English and reviewed for risk consistency.
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