Partner Federation Glossary — last updated September 2026
Leverage lets a trader control a position larger than their own capital, expressed as a ratio — 1:100 leverage means $1,000 of capital can control a $100,000 position, supplied by the broker via margin. Regulators cap how much leverage brokers can offer retail clients in many jurisdictions: ESMA limits major forex pairs to 1:30 for retail clients across the EU, for example, while offshore-facing brokers and accounts classified as “professional” can offer far higher ratios.
Why It Matters for Partners
Leverage limits directly shape how much trading volume a referred client can generate from a given deposit, which flows straight through to lot rebate and spread share earnings — the same $1,000 deposit produces a fraction of the volume under 1:30 EU leverage that it could under 1:500 offshore leverage. It’s a big part of why rebate rates and program terms often look so different between regulated and offshore-facing partnership programs, and why comparing headline rates alone without checking the leverage on offer can be misleading.