Margin & Leverage
Our adaptable margin levels empower you to amplify your trading potential, helping you achieve your investment goals faster.
| Forex |
|---|
| Commodities |
| Indices |
| Cryptocurrency |
| Stocks |
| Maximum Leverage Size |
|---|
| 1:1000 |
| 1:500 |
| 1:20 |
| 1:10 |
| 1:10 |
Calculating Margin
Margin Formula
Margin = Lots × Contract Size ÷ Leverage Size
Example Calculation
Let’s take 2 lots of EURUSD, with a leverage of 1:1000:
- Lots: 2
- Contract size: EUR 100000
- Leverage size: 1000
Calculation
Margin = 2 x 100000 ÷ 1000 = EUR 200
Boost Your Trading With Leverage—Multiply Your Profits and Earnings
Comparing Trading With and Without Leverage
Equity Without Leverage
Investor uses only their own capital to purchase equity.
Risk is limited to the invested amount ($100,000).- Gains or losses are proportional to the amount invested.
An investor has $100,000, borrows $50,000, and invests $150,000 in stocks. Calculation (10% market gain):
$150,000 × 10% = $15,000 profit. After repaying the $50,000 loan, equity = $115,000
Equity With Leverage
Investor borrows additional capital to invest in equity.
Risk includes the borrowed amount; losses may exceed the original capital.- Gains and losses are magnified due to the use of borrowed funds.
Investor has $100,000, borrows $50,000, and invests $150,000 in stocks. Calculation (10% market gain):
$150,000 × 10% = $15,000 profit. After repaying the $50,000 loan, equity = $115,000.
Risks of Margin Trading
Margin trading involves significant risks due to the use of collateral to finance transactions. You may incur losses exceeding your initial cash investment and any other assets provided as collateral to the licensed or registered entity. Adverse market conditions could prevent the execution of contingent orders, such as “stop-loss” or “stop-limit” orders.
You may also be required to promptly deposit additional margin funds or make interest payments. If these payments or deposits are not made within the specified time frame, your collateral may be sold without your consent. Furthermore, you would still be responsible for any shortfall in your account balance, along with any interest charges applied.
It is essential to thoroughly assess whether such a financing arrangement aligns with your financial situation and investment goals.