Leverage Types
Account Leverage
Each trading account has certain leverage defined at the time of creation. However, when entering a trade, the actual leverage may differ because the different symbols can have different leverages.
For example, while the most at the time you can get 1:500 leverage for major currency pairs, the brokers offer much lower leverage for highly volatile pairs, stocks, precious metal and cryptocurrencies (1:10 - 1:50).
In such cases, account leverage is treated as an upper limit.
If the symbol's leverage is smaller than account leverage, then the symbol’s leverage will be applied, if the symbol's leverage is bigger - the account leverage prevails.
Different volumes of the same symbol can have different leverages depending on the volume
Forex Majors Leverage Tiers
| Equity (USD) | Leverage | ||
|---|---|---|---|
| 0 | 499.99 | 2,000 | |
| 500 | 4,999.99 | 1,000 | |
| 5,000 | 19,999.99 | 500 | |
| 20,000 | 99,999.99 | 200 | |
| 100,000 | Unlimited | 100 | |
Forex Minors Leverage Tiers
| Equity (USD) | Leverage | ||
|---|---|---|---|
| 0 | 499.99 | 2,000 | |
| 500 | 4,999.99 | 1,000 | |
| 5,000 | 19,999.99 | 500 | |
| 20,000 | 99,999.99 | 200 | |
| 100,000 | Unlimited | 100 | |
Forex Exotic Leverage Tiers
| Equity (USD) | Leverage | ||
|---|---|---|---|
| Any amount | 200 | ||
FX pairs
Margin Requirement = Lot Volume x Contract Size / Leverage x Margin
Metals
Margin Requirement = Lot Volume x Contract Size x Market Price /Leverage x Margin Percentage / 100
Cryptocurrencies CFD, Energies CFD, Stock CFD, Index Future CFDs
Margin Requirement = Lot Volume x Contract Size x Market Price x MarginPercentage / 100
Contract size & margin percentage for each instrument can be seen on MT4 market watch specification