Leverage is the use of borrowed money (called capital) to invest in a currency, stock, or security. The concept of leverage is very common in forex trading. By borrowing money from a broker, investors can trade larger positions in a currency.
As a result, leverage magnifies the returns from favorable movements in a currency’s exchange rate. However, leverage is a double-edged sword, meaning it can also magnify losses. It’s important that forex traders learn how to manage leverage and employ risk management strategies to mitigate forex losses.
Leverage for ECN account
|
Leverage
|
Deposit $
|
|---|---|
|
1:1000
|
Below < $5,000
|
|
1:500
|
$5,001 to $20,000
|
|
1:400
|
$20,001 to $50,000
|
|
1:200
|
$50,001 to $100,000
|
|
1:100
|
$100,001 to $250,000
|
|
1:50
|
Above > $250,001
|
Leverage for STD account
|
Leverage
|
Deposit $
|
|---|---|
|
1:1000
|
Below < $5,000
|
|
1:500
|
$5,001 to $20,000
|
|
1:400
|
$20,001 to $50,000
|
|
1:200
|
$50,001 to $100,000
|
|
1:100
|
$100,001 to $250,000
|
|
1:50
|
Above > $250,001
|
Leverage for CENT account
|
Leverage
|
Deposit $
|
|---|---|
|
1:1000
|
Below < $100,000
|
|
1:500
|
$100,001 to $500,000
|
|
1:400
|
$500,001 to $2,000,000
|
|
1:200
|
$2,000,001 to $5,000,000
|
|
1:100
|
$5,000,001 to $10,000,000
|
|
1:50
|
Above > $10,000,001
|
For all other instruments, new positions can be opened if the margin requirement for the new positions is equal or less than the free margin of the account. When hedging, margin requirement for the hedged position is equal to 50%. New hedged positions can be opened if the final margin requirements will be equal or less than the total equity of the account.
Profitto Deposit Partners
