Leverage Options for Trading: Dynamic, Fixed, and Unlimited Leverage
In the dynamic world of trading, understanding the intricacies of leverage is paramount. We offer three distinct leverage options—Dynamic Leverage, Fixed Leverage, and Unlimited Leverage—each tailored to different trading accounts and instruments, designed to empower your trading strategies while ensuring responsible practices.
Dynamic Leverage (For Forex and Gold): Dynamic Leverage dynamically adjusts leverage based on your trading volume, optimizing risk management. This type of leverage is accessible across standard, raw, zero, and swap-free trading accounts, primarily for Forex and Gold trading. The dynamic leverage structure responds as follows:
|Lots Traded||Leverage Ratio|
|0 – 5 lots||1:2000 Only Zero Accounts|
|5.01 – 10 lots||1:1000 Only Zero Accounts|
|10.01 – 20 lots||1:500 Only Zero Accounts|
|+20 lots||1:300 Only Zero Accounts|
For different asset classes, Fixed Leverage is as follows:
- Crypto: 1:50
- Shares: 1:5
- Energies: 1:200
- Metals: 1:200 (excluding Gold)
- Indices: 1:100
Unlimited Leverage (For Forex, Gold, Silver, and Select Indices/Commodities): Unlimited Leverage, available exclusively in the Unlimited account type, offers extensive leverage starting from a minimum of 1:10,000,000. While it’s not truly infinite, it’s designed to simulate an “absolute zero” margin requirement for specific volumes. This form of leverage applies to Forex, Gold, Silver, and selected indices and commodities, including USOUSD, BRNUSD, UKOUSD, DJIUSD (DJI30), SPXUSD (SP500), NDXUSD (NASUSD) and DAXEUR (D40EUR). The Unlimited Leverage structure operates as follows:
|Lots Traded||Leverage Ratio|
|0 – 0.5 lots||1: ∞ (Unlimited)|
|0.51 – 1 lots||1:2000|
|1.01 – 2 lots||1:1000|
|2.01 – 40 lots||1:500|
Special Conditions: Unlimited Leverage accounts feature a unique aspect. Before markets close for the weekend and during news events, new positions within the Unlimited Leverage account are subject to a temporary leverage change. During these times, the leverage for new positions will be set at 1:200. After these events or upon market reopening, Unlimited Leverage is fully restored to its regular conditions.
- MT5 Assumption: Unlimited Leverage commences at 1:10,000,000 leverage in MT5, essentially operating as an “absolute zero” margin for specific positions.
- Simultaneous Positions: Leverage calculations consider aggregate volume across all currency pairs with concurrent positions. These conditions, however, don’t apply to Dynamic Leverage or Fixed Leverage.
Choose your leverage wisely, tailoring it to your trading approach, risk tolerance, and desired outcomes. While leverage can magnify gains, it’s imperative to recognize its potential for heightened losses. Make responsible choices aligned with your trading strategy and risk management principles, keeping in mind the special conditions that apply to Unlimited Leverage during certain market events.