Leverage is the use of borrowed capital from your broker to open larger positions than your account balance would normally allow. Margin is

Margin is the required collateral set aside by your broker to keep a leveraged position open. In prop trading, understanding how margin interacts with your leverage and position sizing is vital. Exceeding your risk parameters can quickly breach strict daily loss limits. Traders often calculate exact lot sizes relative to account equity to avoid sudden margin calls or automatic liquidations. How do you manage your margin and position sizing during high-impact news events?