What is Trading Leverage and Margin Level ? for traders

In this article, we will cover Trading Leverage and Margin, along with information related to them such as which Exness trading account type? How is capital? When?

What is Trading Leverage and Margin Level

What is trading leverage?

Leverage magnifies purchasing power, that way trader will be able to trade large volumes even with a small margin. It is indicated in Leverage as 1:100, 1:500 or 1: Unlimited.

Maximum leverage will depend on market conditions, when market is about to have important news to be announced, or holidays.

Amount of leverage varies as it depends on your account equity and below you will see a summary of leverage against your available balance.

Balance Leverage

0 – 999 USD (MT4 only)

1: Vô cực

0 – 4 999 USD

1:2000

5 000 – 14 999 USD

1:1000

15 000 – 29 999 USD

1:600

30 000 – 59 999 USD

1:400

60 000 – 199 999 USD

1:200

200 000 USD trở lên

1:100

Unlimited Trading Leverage

Unlimited Leverage allows you to trade with negligible margin thus allowing you to open very large positions (we recommend not to use too much leverage, as a result you will lose money). cancel your entire amount). Exness allows unlimited leverage of 1: 2 100 000 000.

This rate is available on Standard, Standard Cent, Pro, Raw Spread and Zero accounts when trading on MT4 platform. On MT5, maximum allowable leverage for all instruments and groups is 1:2000.

Unlimited leverage is more suitable for experienced traders as it carries a higher risk and can lead to more capital loss.

Dynamic margin requirements

For majority of trading instruments, margin requirements are dynamic, which means they change as leverage changes – larger leverage, smaller margin requirement and vice versa. Factors such as important economic news releases and trading before weekends and holidays can also affect margin requirements.

Trading leverage will change automatically in following cases:

  • When your account equity changes
  • During release of important economic news
  • Before and after weekends and holidays
  • From 15 minutes before important economic news is released to 5 minutes after.
  • From 19:00 GMT+0 on Friday to 23:00 GMT+0 on Sunday, margin requirements for newly opened positions will be calculated based on a maximum leverage of 1:200.
  • Daily closing and opening of market for Shares will result in high margin requirements if an order is opened between time periods before and after market close, unlike release of financial statements that result in high margin requirements whenever a position is opened.

Verify your instrument’s margin requirements for yourself with help of our Trader Calculator.

Fixed margin requirements

Margin requirements for some trading products are fixed, no matter what leverage you use. That is group of trading products for Rare Coins, Cryptocurrencies, Energy, Stocks and Indices. Margin requirements for palladium and platinum are also fixed.

How leverage affects your trading ?

In forex, a sudden stop can be an extremely unpleasant thing to happen. However, risk management techniques can help you test different trading conditions to be better prepared. Let’s see how your leverage impacts your stops and how you can better control this.

Stop out (Automatic stop loss)

Margin call it does not automatically close your positions and only alerts you to position deterioration, which will occur when 60% margin is reached. When your margin reaches a certain percentage, which is in most cases 0%, Stop out will automatically close position.

What is margin level?

Margin is a percentile that tracks both your margin and your equity, and formula is calculated as follows:

Equity / Margin x 100 = Margin Level

So if your equity is $3000 and your margin is $300 your margin will be 1000%.

So, when this percentage reaches 0%, stop out will automatically close positions for those positions that no longer have enough margin.

Summary of trading Leverage

Leverage changes your initial holding margin as well as your equity, and that in itself can affect outages. Leverage is just a means of pushing a trader’s purchasing power up by a set ratio: 1 up to 2000 or more. For example, 1:200 means that for every 1 dollar you put in Margin in your trading account, it will be magnified to 200. This can be useful for small capital with a range of profit. , but with it comes a correspondingly higher potential risk, as loss volatility will also increase.

How will customers receive notifications?

Customers are notified by email sent to their trading platform (approximately 45 minutes prior to news release) to indicate time and currency affected by news. However, we recommend that you actively check Economic Calendar, as it will avoid some hiccups if you do not receive notifications.

Customers can check news via Economic Calendar which Exness also offers: you can follow news releases by checking Economic Calendar on website. Red flame icon next to news indicates high importance.

You can also filter news based on currency you trade.

Margin call and Stop levels for Exness account type

Here’s everything you need to know about Margin Call and Stop Levels for different accounts that we’ve summarized in one simple table:

Type account Margin call Stop levels

Standard Cent

60% 0%

Standard

60% 0%*

Pro

30% 0%*

Zero

30% 0%*

Raw Spread

30% 0%*