Traders must review the market before selecting from the various leverage options offered by brokers. For the uninitiated, leverage refers to the capital traders can acquire from brokers with a minimal margin payment. However, since it can amplify both profits and losses, knowing the right proportion is critical to a profitable journey. Here are three ways you can adopt to ascertain the right proportion. Start with low leverage levels to limit your potential losses Use trailing stops to curtail downside and preserve capital. Keep leverage capital to be around 1-2% of the overall position size.