Forex traders are able to leverage their equity, empowering them to capitalize on market movements and make more significant returns. Unlike stocks which only allow 2:1 leverage and futures that offer a maximum of 50:1 leverage, FX Trading offers leverage as high as 500:1. With 500:1 leverage, a trader only needs $250 of equity to open each standard $100,000 lot. These $250 are refered to as their initial margin deposit. If a trader correctly predicts a 1 penny movement of the GBP/USD, they'll make a $1,250 gain from their $250 initial margin deposit. From a 1 cent movement, the trader made a 500% return off of their initial margin! The Forex market regularly moves several cents, presenting many opportunities for traders to make significant gains.