What Is ‘Effective Leverage’ and Why Might It Differ from the Platform’s Stated Leverage?

Effective leverage is the actual leverage being used based on the current market value of the position relative to the current equity in the account. It differs from the stated leverage (the maximum offered) because traders may use less than the maximum leverage, or the value of their position and equity may fluctuate.

It is a more accurate measure of the real-time risk exposure.