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Understanding Dynamic Leverage Limits

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Introduction

Since March 22, 2021, FXTRADING.com has implemented a dynamic leverage system for forex and gold trading. This system automatically adjusts your leverage based on your account equity to help manage risk effectively.


How Dynamic Leverage Works

Forex (FX) Dynamic Leverage - Reduction Only

Your leverage adjusts automatically based on your account equity:

Client's Equity (per Account)

Leverage - Reduction ONLY

0 - 300.00*

2000:1

300.01 - 1,000.00*

1000:1

1,000.01 - 50,000.00*

500:1

50,000.01 - 100,000.00*

400:1

100,000.01 - 200,000.00*

300:1

200,000.01 - 300,000.00*

200:1

300,000.01 and above*

100:1

Gold Dynamic Leverage - Reduction Only

Client's Equity (per Account)

Leverage - Reduction ONLY

0 - 50,000.00*

500:1

50,000.01 - 100,000.00*

400:1

100,000.01 - 200,000.00*

300:1

200,000.01 - 300,000.00*

200:1

300,000.01 and above*

100:1

Fixed Leverage for Other Asset Classes

Asset Classes

Leverage

Silver and Energies

100:1

Indices

100:1

Commodities

100:1

BTCUSD and ETHUSD

100:1

Other Cryptocurrencies

20:1

Stocks

10:1


Understanding Equity Calculation

Equity = Account Balance + Floating Profit/Loss on Open Positions

Important: After adjusting leverage settings, please re-login to your MT4/MT5 trading terminal to ensure margin parameters update correctly.


Risk Warnings

  • Leverage Reduction Risk: When your equity increases and leverage automatically reduces, your margin requirements will increase. If your margin level falls below 50%, positions may be liquidated.

  • Currency Considerations: All amounts listed above are in USD. If your trading account uses a different base currency (such as GBP or EUR), the thresholds will adjust according to real-time exchange rates against USD.

  • High Leverage Caution: While higher leverage can amplify profits, it equally magnifies potential losses. Always consider your trading experience, risk tolerance, and account size when selecting leverage levels.


Additional Notes

  • FXTRADING.com reserves the right to adjust leverage limits at any time.

  • Using maximum leverage at all times is not recommended for sound risk management.

  • Please carefully consider how leverage levels impact your trading strategy.


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