Leverage Overview:
Leverage in forex trading allows traders to control a larger position with a smaller amount of capital. It amplifies both potential gains and potential losses, making it a powerful tool that needs to be used with care.
Default Leverage Setting: By default, all trading accounts are set with a leverage of 1:100. You may change the leverage on your funded account via the Client Portal or ask our friendly Support to assist you.
Available Leverage Options: Clients have the flexibility to choose from various leverage options based on their trading strategies and risk tolerance. The available leverage options are:
- 1:5
- 1:10
- 1:25
- 1:33
- 1:100
- 1:200 (Applies to FX products only)
How to Change Your Leverage: To change your leverage setting, follow these steps:
- Log in to the client portal.
- Navigate to the 'Dashboard' section.
- Click manage and Select the 'Change Leverage' option.
- Choose your desired leverage from the available options.
- Confirm your selection.
Important Considerations:
- Risk Management: Higher leverage increases both potential profit and potential risk. Ensure you understand the implications of using higher leverage and manage your risk accordingly.
- Trading Strategy: Choose a leverage that aligns with your trading strategy and market conditions.
Important Information for Higher Leverage (1:200 to 1:400)
Higher leverage increases the risk of a negative balance for your account. To mitigate this risk, we allow for a 300-pip exposure buffer for accounts with leverage above 1:100. Note that higher leverages apply to FX products only.
This buffer helps protect against negative balances in volatile markets but does not completely eliminate the risk. For example, in a 300-pip market gap, exceeding the maximum allowable lot exposure could still result in a negative account balance.
Calculating Maximum Allowable Lot Exposure for Higher Leverage Accounts
Lots Open × 100,000 × 0.033 = Required Equity in USD
Examples:
To hold 1 lot: 1 × 100,000 × 0.033 = 3,300 USD equity required
To hold 10 lots: 10 × 100,000 × 0.033 = 33,000 USD equity required.
If your exposure exceeds the allowed limit, we may notify you by email. You will then have 24 hours to reduce your exposure, or your leverage will revert to 1:100.
Please note that we do not provide higher leverage to clients who are looking to open larger position sizes (as this can be done on 1:100), rather we provide higher leverage to clients who are looking to reduce their margin utilization.