Leverage limits in forex trading vary by country and regulatory authority, but they typically range from 30:1 to 500:1. The maximum leverage allowed for retail forex traders in the United States is 50:1, as mandated by the Commodity Futures Trading Commission (CFTC). Setting leverage limits is done to protect traders from excessive risk and potential losses. When traders use a high level of leverage, even minor market movements can result in large gains or losses, quickly depleting a trader's account balance. Regulators hope to protect traders while also promoting a more stable and transparent forex market by limiting leverage.