What is leverage
Leverage is a financial tool that allows investors to use a small amount of capital as margin to control a larger amount of funds for trading.
Leverage level determines the size of the required margin. In the forex market, leverage typically ranges from 20 to 500 times.
Principle
The function of forex leverage works through margin trading. Investors only need to pay a amount of margin to control a trading position that is much larger than the margin amount itself.
For example, David wants to make a $100,000 trade. Assuming a leverage of 500:1, he needs 100,000 / 500 = 200 US dollars to place the trade.
When using leverage, traders can significantly increase profits, but losses can also be magnified. Therefore, assessing risks and using stop-loss and limit orders to reduce potential losses is crucial.
The following are the leverage levels for products (default maximum)
Forex
Name | Code | Contract Size | Leverage | Margin Rate |
Major Currency Pairs | / | 100,000 | 500 | 0.20% |
United States Dollar / Hong Kong Dollar | USDHKD | 100,000 | 50 | 2.00% |
United States Dollar / Norwegian Krone | USDNOK | 100,000 | 50 | 2.00% |
United States Dollar / Polish Zloty | USDPLN | 100,000 | 50 | 2.00% |
United States Dollar / Swedish Krona | USDSEK | 100,000 | 50 | 2.00% |
United States Dollar / Singapore Dollar | USDSGD | 100,000 | 50 | 2.00% |
United States Dollar / Turkish Lira | USDTRY | 100,000 | 50 | 2.00% |
United States Dollar / South African Rand | USDZAR | 100,000 | 50 | 2.00% |
Metals
| Name | Code | Contract Size | Leverage | Margin Rate |
| Silver / United States Dollar | XAGUSD | 5,000 | 500 | 0.20% |
| Gold / United States Dollar | XAUUSD | 100 | 500 | 0.20% |
Energy
| Name | Code | Contract Size | Leverage | Margin Rate |
| UK Brent Crude Spot | XBRUSD | 1,000 | 100 | 1.00% |
| Natural Gas Spot | XNGUSD | 10,000 | 100 | 2.00% |
| US West Texas Oil Spot | XTIUSD | 1,000 | 100 | 1.00% |
Indices
| Name | Code | Contract Size | Leverage | Margin Rate |
| UK FTSE 100 Index Spot CFD | 100GBP | 10 | 100 | 1.00% |
| Australia S&P/ASX 200 Index Spot CFD | 200AUD | 10 | 100 | 1.00% |
| Japan Nikkei 225 Index Spot CFD | 225JPY | 100 | 100 | 1.00% |
| China A50 Index Spot CFD | CNIUSD | 10 | 100 | 1.00% |
| Germany DAX 30 Index Spot CFD | D30EUR | 10 | 100 | 1.00% |
| Euro STOXX 50 Index Spot CFD | E50EUR | 10 | 100 | 1.00% |
| France CAC40 Index Spot CFD | F40EUR | 10 | 100 | 1.00% |
| Hong Kong Hang Sheng Index Spot CFD | HSIHKD | 10 | 100 | 1.00% |
| US NASDAQ-100 Index Spot CFD | NASUSD | 10 | 100 | 1.00% |
| US S&P 500 Index Spot CFD | SPXUSD | 100 | 100 | 1.00% |
| US Dow Jones Industrial Average Index Spot CFD | U30USD | 10 | 100 | 1.00% |
US Stock CFDS
| Name | Code | Contract Size | Leverage | Margin Rate |
| US Stock CFDs | Stock CFDs | 1 | 5 | 20.00% |
ETF CFDS
| Name | Code | Contract Size | Leverage | Margin Rate |
| ETF CFDs | ETF CFDs | 1 | 5 | 20.00% |