400:1 Leverage
Forex traders are able to leverage their equity, empowering them to capitalize on market movements and make more significant returns. Unlike stocks which only allow 2:1 leverage and futures that offer a maximum of 50:1 leverage, FX Trading offers leverage as high as 400:1. With 400:1 leverage, a trader only needs $250 of equity to open each standard $100,000 lot. These $250 are refered to as their initial margin deposit. If a trader correctly predicts a 1 penny movement of the GBP/USD, they\'ll make a $1,000 gain from their $250 initial margin deposit. From a 1 cent movement, the trader made a 400% return off of their initial margin! The Forex market regularly moves several cents, presenting many opportunities for traders to make significant gains.
400:1 Leverage with FX Trading
With FX Trading, your investment goes further than with our competitors. Compared to those who offer only 100:1 leverage, your investment with us is 4 times more powerful. The example below will clearly illustrate the power of our 400:1 leverage.
Understanding 400:1 Leverage- Calculating Your Maximum Allowable Lots
- You invest $10,000 USD into a standard account
- Subtract $500 of equity due to our Negative Balance Protection, leaving $9,500 of equity.
- With 400:1 leverage, you need $250 of initial margin deposit to open each position (100,000 standard unit / 400 = 250)
- $9,500 / $250 per lot = 38 lots
- With a $10,000 initial investment, your maximum allowable lots is 38.
Calculating Maximum Allowable Remaining Lots on the Fly
To calculate the number of lots you may open while you\'re already in a position, complete the above calculation, but substitute your usable margin for your equity.
If you have any questions with regard to our 400:1 leverage, Contact US or speak to a representative via the online chat to the left.
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