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, Mr. Zhao wants to make a $100,000 trade. Assuming a leverage of 500:1, he only 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 Oil Spot | XNGUSD | 10,000 | 50 | 2.00% |
| US West Texas Oil Spot | XTIUSD | 1,000 | 100 | 1.00% |
Index
| 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% |