Understanding Leverage in Trading
Leverage allows you to amplify your market exposure by using borrowed funds, enabling you to control larger positions with a smaller initial investment. When you first open a Live account, your default leverage will be set to 1:500.
To ensure you're using leverage effectively, it’s recommended to reach out to your mentor or explore online resources to gain a deeper understanding of how leverage works and what environment suits your trading style best.
How Leverage Varies Across Different Markets:
Leverage is not uniform across all asset classes. Depending on the market you are trading, the leverage can differ. The leverage setting on your account only applies to Forex trades, while other markets have a fixed leverage that cannot be changed.
Here are the leverage settings for various asset classes:
- Forex: 1:500
- Commodities: 1:200
- Indices: 1:200
- Cryptocurrencies: 1:100
- EU Stocks: 1:20
- US Stocks: 1:10
- Agriculture Commodities: 1:30