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Leverage

Last update: 20.07.2022

Leverage is the relation between the amount of bail and the borrowed funds allocated for it — 1:50, 1:100, 1:200. The leverage 1:100 means that the equity on your account which is 100 times less than the amount of funds needed for that trade volume is enough for you to trade.

Example: you buy 1 lot USD/JPY. With 1:200 leverage the required margin will amount to 100 000 \ 200 = $500, with 1:100 leverage — 100 000 \ 100 = $1000, and with 1:50 leverage — 100 000 \ 50 = $2000. The cost of point and trade volume don’t change.

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