High Leverage - Low Margin

You can begin to trade with a leverage ratio of 1:1, though we do not recommend it. A leverage ratio is just a credit ratio. A margin call may occur quickly even though you have sufficient funds on your account.

For example:

Your account has a leverage ratio of 1:100. If you open a position for 100,000 EUR/USD at the rate of 1.40, your margin will be 100,000 x 1.40 / 100 = 1400.

If you have made a trading error and the price starts to go against you, your equity will start to approach 0 and your position will be closed when your equity reaches the following amount:

X = Stop-Out level x Margin = 0.4 (40%) x 1400 = 560

That is, the system will automatically close your positions when your equity reaches $560 in this case, given your leverage ratio of 1:100.

If you set a lower leverage ratio on your account, such as 1:10, then the margin will be 140,000 / 10 = 14,000, and your positions will be closed when the equity reaches the following amount:

X = Stop-Out Level x Margin = 0.4 (40%) x 14000 = 5600

As you can see, the lower the ratio, the higher the equity amount at which your positions will be automatically closed. That means it is better to choose a higher leverage ratio, but not trade at the maximum level or open positions of large volumes. This will greatly reduce your trading risks.

We do not recommend using a real leverage ratio greater than 1:20 in trading, but the final decision is up to you. Our system allows you to have a leverage ratio up to 1:1000. The margin will be only 0.1% of the volume of opened positions.

Please keep in mind that the use of a high leverage ratio leads to very high risks. Remember that the more you can earn, the greater the risk of losing your money. Be reasonable and pay attention!