Leverage lets you open a much larger position with a small margin. It magnifies losses as much as gains — which is why regulators limit it.
Why did the SPK set a 1:10 cap?
With its 2017 regulation, the Capital Markets Board of Türkiye (SPK) capped leverage on major pairs at 1:10 and introduced minimum margin and a mandatory suitability test. The goal is to prevent inexperienced investors from losing all their capital in a single trade.
Why is a 1:500 leverage promise a warning sign?
An SPK-licensed institution cannot offer more than 1:10. Platforms offering very high leverage such as 1:500 or 1:1000 are almost always unauthorized offshore sites; there is no investor protection and the fraud risk is high. Verify a broker’s SPK status before you trade.