Leverage is a trading mechanism designed to let a position control more notional value than the account’s capital — 1:100 leverage means a $1,000 margin controls a $100,000 position.

In evaluations, leverage is a rule parameter, not a free choice: programs cap leverage per asset class, and crypto instruments typically carry far lower caps than forex because of their volatility profile. Higher leverage does not change your risk limits — the daily loss limit and maximum drawdown apply identically — it only changes how fast you can reach them. Most daily-limit breaches during news events are leverage decisions in disguise.