<h2>Leverage Ratio</h2>
<p>The <strong>leverage ratio</strong> is a crucial concept in trading, representing the ratio of the total market value of all derivatives to the total equity of the entity. In simpler terms, it's the amount of debt used to finance investments compared to the equity used.</p>

<h2>How It Works</h2>
<p>Leverage is a double-edged sword in trading. It amplifies both potential profits and losses. Here's how it works:</p>
<ul>
  <li>When you trade with leverage, you're borrowing funds from your broker to control a larger position than your account equity would otherwise allow.</li>
  <li>For instance, with a leverage ratio of 1:300, you can control a position worth up to 300 times your account equity.</li>
  <li>If the trade moves in your favor, your profits are amplified by the same factor. However, if the trade moves against you, your losses are also amplified.</li>
</ul>

<p>In the context of <strong>STB Provider</strong>, a regulated Forex and CFD broker, the maximum leverage offered is 1:300. This means that for every $1 in your account, you can control a position worth up to $300.</p>

<h2>Why It Matters for Traders</h2>
<p>Understanding and managing leverage is vital for traders. Here's why:</p>
<ul>
  <li><strong>Potential for higher profits</strong>: Leverage allows traders to control larger positions, potentially leading to higher profits.</li>
  <li><strong>Risk management</strong>: While leverage can amplify profits, it can also amplify losses. Therefore, it's crucial to manage risk effectively by setting stop-loss orders and not over-leveraging your account.</li>
  <li><strong>Margin calls</strong>: If your account equity falls below a certain level due to losses, your broker may issue a margin call, requiring you to deposit more funds or close open positions.</li>
</ul>

<h2>Example</h2>
<p>Let's say you have a $10,000 account with STB Provider and you're trading EUR/USD with a leverage ratio of 1:300.</p>
<ul>
  <li>With this leverage, you can control a position worth up to $3,000,000.</li>
  <li>If the EUR/USD rate moves 100 pips in your favor, your profit would be $300 (100 pips * $3 per pip).</li>
  <li>However, if the rate moves 100 pips against you, your loss would be $300 (100 pips * $3 per pip).</li>
</ul>

<h2>Key Takeaways</h2>
<ul>
  <li>Leverage amplifies both profits and losses.</li>
  <li>Managing risk effectively is crucial when trading with leverage.</li>
  <li>At STB Provider, the maximum leverage offered is 1:300 for retail clients.</li>
  <li>Understanding and managing leverage is essential for successful trading.</li>
</ul>