What is Leverage?
Account leverage in trading accounts refers to using borrowed funds to increase the potential return on investment. It allows traders to open positions larger than their actual account balance.
Leverage is expressed as a ratio, such as 1:50, 1:100, or 1:500, indicating how many times the account balance can be multiplied to determine the maximum allowable trade size. For example, with 1:100 leverage, a trader can control $100,000 worth of assets with only $1,000 in their account.
While leverage can magnify profits, it also increases the potential for significant losses, making risk management crucial.
What are my leverage options?
The leverage available for live trading ranges from 1:100 is 1:500. Please note the recommended equity requirements for each leverage:
*Leverage | Recommended Equity |
1:500 | $5,0000 |
1:400 | $10,000 |
1:300 | $50,000 |
1:200 to 1:125 | $100,000 |
1:100 | $100,000 + |
*Leverage may be adjusted as necessary, taking into consideration trading patterns, market conditions, and overall risk exposure, to ensure a secure and sustainable trading environment.
How do I change my leverage?
From your Client Portal, follow the steps below:
Important Notes
Leverage decrease may work only if your trading account has no open trades. This is in place to protect your margin.
While the maximum ratios apply to most forex and commodities, some instruments have fixed leverage.
Leverage changes are subject to account equity requirements and can, therefore, be modified dynamically on a case-by-case basis.