What is leverage?
Leverage is the ratio of a trader’s own funds (the deposit) to the total trade amount.
It allows traders to open positions that are significantly larger than the actual funds available in their account. In simple terms, it is a loan provided by the broker to increase the potential trading volume.
The company provides traders with the opportunity to carry out trading operations using leverage of up to 1:1000 on MT4-Instant and MT4-Market accounts, as well as on MT5-Instant and MT5-Market accounts.
This means that the total notional value of all open positions at one time can exceed the current balance of funds in the trader's trading account by a maximum of 1000 times. The size of the leverage depends on the type of trading account, the trading instrument and the amount of the total position in USD.
Leverage size depending on the total position size in USD
MT4-Market and MT5-Market
FX Major currency pairs
Total position size in USD | Leverage* |
less than 1 million | 1000 |
1 million – 5 million | 500 |
5 million – 10 million | 200 |
10 million – 20 million | 100 |
more than 20 million | 5 |
FX RU and FX S. America currency pairs
Total position size in USD | Leverage* |
any | 40 |
Other currency pairs
Total position size in USD | Leverage* |
less than 5 million | 200 |
5 million – 10 million | 100 |
10 million – 20 million | 20 |
more than 20 million | 5 |
Gold
Total position size in USD | Leverage* |
less than 3 million | 500 |
3 million – 10 million | 200 |
10 million – 20 million | 100 |
20 million – 35 million | 20 |
more than 35 million | 5 |
Silver
Total position size in USD | Leverage* |
less than 1 million | 500 |
1 million – 5 million | 100 |
5 million – 10 million | 20 |
more than 10 million | 5 |
CFDs on Indices ES, FDAX, YM, NQ, Z
Total position size in USD | Leverage* |
less than 0.5 million | 500 |
0.5 million – 1 million | 300 |
1 million – 2 million | 100 |
2 million – 5 million | 50 |
5 million – 10 million | 20 |
more than 10 million | 10 |
CFDs on other Indices
Total position size in USD | Leverage* |
less than 0.3 million | 200 |
0.3 million – 1 million | 100 |
1 million – 1.5 million | 50 |
1.5 million – 5 million | 25 |
more than 5 million | 10 |
CFDs on Oil Futures
Total position size in USD | Leverage* |
less than 500K | 100 |
500K – 1 million | 50 |
1 million – 2 million | 25 |
more than 2 million | 10 |
CFDs on Metals (except Gold and Silver)
Total position size in USD | Leverage* |
less than 500K | 50 |
500K – 2 million | 25 |
2 million – 5 million | 12.5 |
more than 5 million | 10 |
1. Major Stocks (AAPL, AMZN, GOOGL, META, MSFT, TSLA)
Total position size in USD | Leverage* |
less than 100K | 10 |
more than 100K | 5 |
2. All other stocks (except those listed in item 1)
Total position size in USD | Leverage* |
any volume | 5 |
3. Major Cryptocurrencies (BTCUSD and ETHUSD)
Total position size in USD | Leverage* |
less than 50K | 200 |
50K – 500K | 100 |
500K – 1 million | 50 |
1 million – 5 million | 20 |
5 million – 10 million | 10 |
more than 10 million | 1 |
4. Other Cryptocurrencies (except those listed in item 3)
Total position size in USD | Leverage* |
less than 5K | 75 |
5K – 10K | 50 |
10K – 500K | 20 |
500K – 1 million | 10 |
more than 1 million | 1 |
MT4-Instant and MT5-Instant
FX Major currency pairs
Total position size in USD | Leverage* |
less than 1 million | 1000 |
1 million – 5 million | 500 |
5 million – 10 million | 200 |
10 million – 20 million | 100 |
more than 20 million | 5 |
FX RU and FX S. America currency pairs
Total position size in USD | Leverage* |
any | 40 |
Other currency pairs
Total position size in USD | Leverage* |
less than 5 million | 200 |
5 million – 10 million | 100 |
more than 10 million | 5 |
Gold
Total position size in USD | Leverage* |
less than 3 million | 500 |
3 million – 10 million | 200 |
10 million – 20 million | 100 |
20 million – 35 million | 20 |
more than 35 million | 5 |
Silver
Total position size in USD | Leverage* |
less than 1 million | 500 |
1 million – 5 million | 100 |
5 million – 10 million | 20 |
more than 10 million | 5 |
CFD on Indices ES, FDAX, YM, NQ, Z
Total position size in USD | Leverage* |
less than 0.5 million | 500 |
0.5 million – 1 million | 300 |
1 million – 2 million | 100 |
2 million – 5 million | 50 |
5 million – 10 million | 20 |
more than 10 million | 10 |
CFD on other Indices
Total position size in USD | Leverage* |
less than 0.3 million | 200 |
0.3 million – 1 million | 100 |
1 million – 1.5 million | 50 |
1.5 million – 5 million | 25 |
more than 5 million | 10 |
CFD on Oil Futures
Total position size in USD | Leverage* |
less than 500K | 100 |
500K – 1 million | 50 |
1 million – 2 million | 25 |
more than 2 million | 10 |
CFD on Metals (except Gold and Silver)
Total position size in USD | Leverage* |
less than 500K | 50 |
500K – 2 million | 25 |
2 million – 5 million | 12.5 |
more than 5 million | 10 |
1. Major Stocks (AAPL, AMZN, GOOGL, META, MSFT, TSLA)
Total position size in USD | Leverage* |
less than 100K | 10 |
more than 100K | 5 |
2. All other stocks (except those listed in item 1)
Total position size in USD | Leverage* |
any volume | 5 |
3. Major Cryptocurrencies (BTCUSD and ETHUSD)
Total position size in USD | Leverage* |
less than 50K | 200 |
50K – 500K | 100 |
500K – 1 million | 50 |
1 million – 5 million | 20 |
5 million – 10 million | 10 |
more than 10 million | 1 |
4. Other Cryptocurrencies (except those listed in item 3)
Total position size in USD | Leverage* |
less than 5K | 75 |
5K – 10K | 50 |
10K – 500K | 20 |
500K – 1 million | 10 |
more than 1 million | 1 |
* Every Friday, 1 hour before the close of the trading session, for all open and newly opened positions, the maximum leverage is reduced by one or more "steps" down.
For example, for FX Majors currency pairs, the maximum leverage during this period changes from 1000 to 500; for silver, the maximum leverage decreases from 100 to 50, and so on.
Example of margin calculation considering floating leverage on MT4-Instant account
Let's consider a hypothetical example with floating leverage:
Opening position №1: Buy 8 lots of EURUSD at price 1.10510 (Position №1).
Nominal value equals 8 * 100,000 * 1.10510 = 884,080 USD.
Since the nominal value 884,080 USD does not exceed 1,000,000 USD, the margin requirements (collateral) are calculated with leverage 1:1000, i.e., the margin is: 884,080 ÷ 1000 = 884.08 USD.
Opening position №2: Buy 40 lots of EURUSD at 1.08310.
Nominal value equals: 40 * 100,000 * 1.08310 = 4,332,400 USD.
The total nominal value for positions №1 and №2:
884,080 (pos. №1) + 4,332,400 (pos. №2) = 5,216,480 USD.
Now the total nominal value of two open positions exceeds 5,000,000 USD, and the total margin is calculated differently:
for the first 1,000,000 USD leverage is 1:1000,
for the next 4,000,000 USD leverage is 1:500,
and for the remaining part leverage is 1:200.
Thus, the margin equals:
1,000,000 ÷ 1000 + 4,000,000 ÷ 500 + 216,480 ÷ 200 = 1000 + 8000 + 1082.4 = 10,082.4 USD.