Start with exposure
For a simplified linear example, $5,000 of equity at 10× leverage represents $50,000 of exposure. An adverse 3% move produces a $1,500 loss before costs: 30% of the starting equity. This is an illustration, not a forecast.
What the illustration leaves out
Fees, borrowing costs, market gaps and liquidation rules can change the result. Some leveraged arrangements can produce losses beyond the amount initially invested.
Compare before you conclude
Run the same hypothetical move with different leverage values in the tool. Record which assumptions changed. Then compare the illustration with the actual product agreement rather than treating it as a broker-specific estimate.
Further reading: SEC leveraged investing education. Check the relevant authority for your jurisdiction.
General education only. Examples are hypothetical and are not personal investment advice.
Explore a leverage scenario