Leverage 1 3000

It basically means that you need to have a statement of 40 trades with large lot sizes in the past year and your investment must be at least € 500000 whether in forex or out of it such as stocks or savings — property portfolios are not included.

Top-3 forex bonuses

For example, a broker might offer 1:2000 as its maximum leverage to its STP or micro/cent account but the max leverage for its ECN type of account is 1:500.

Leverage 1 3000

The highest leverage reputable forex brokers in 2021

There are forex brokers in the industry offering very high leverage such as 1:1000, 1:2000, or even 1:3000. I’ve looked into more than 400 forex brokers in the industry to find the highest leverage among reputable forex brokers. After finding them, I examined their leverages from different angles.

Although you can find very high leverages such as 1:2000 or 1:3000 there are some limitations for such leverages. One of them is that the high leverage is limited to the size of your account; the larger size account is the lower leverage you get.

There are also some limitations for some countries regarding the regulation. Some regulatory bodies don’t allow brokers to offer high leverages.

Other than all that, very high leverages such as 1:1000 or above are not for all trading instruments and are mostly offered for major forex pairs.

So before introducing forex brokers offering the highest leverage, let’s talk about these limitations more.

You'll see in this article:

Forex brokers’ limitations on high leverage

As I mentioned earlier, offering high leverage by forex brokers doesn’t mean that forex brokers give such high leverages to everyone or in all situations. There are some exceptions that I’ve categorized them based on my experience and of course an extra study that I’ve done.

These are the areas that forex brokers may not offer their highest leverage:

Account size

When a broker offers 1:1000 or 1:2000 as leverage, it doesn’t mean that you can use such leverages with any size of accounts and there’s a leverage structure for that.

With larger size accounts, you receive lower leverage and the high leverage of brokers is offered to smaller size accounts.

For instance, up to $200, you can use a leverage of 1:3000. From $200 to $3000, a leverage of 1:2000 is available. From $3000 to $10000, you can use 1:1000 and so on.

This kind of structure is similar among all the highest leverage forex brokers to a great extent and you can’t find any broker that offers very high leverage to large size accounts, however, there are small differences.

For example, broker A offers a leverage of 1:2000 to the account size of up to $2000 while broker B offers the same leverage to traders who want to open an account of $3000 or less.

Given all that, you may want to check out the leverage structure of the brokers to pick the one that suits you the best.

Lot size (notional value)

Some forex brokers don’t consider the size of accounts as a factor for offering high leverage. Instead, they put limits on the lot size or the amount of money that you use for trades. They calculate that based on notional value.

For instance, if the notional value is less than 50000, you can use 1:2000 as leverage; between 50000 and 2000000, you can use 1:1000; and etc.

The notional value is calculated by this formula:

The contract size for one lot of forex pairs is 100000 — for mini lot is equal to 10000 and for micro lot, it’s 1000.

For CFD shares it’s normally 1 and for gold the contract size is usually 100.

Let’s clear that up with an example…

Let’s say that a forex broker offers a lever of 1:2000 if the notional value is up to 50000. You want to buy 2 mini lots (0.2 lots) of EUR/USD and the price of this pair is at 1.1755. According to the formula, the notional value here is:

Since 11755 type of account

As you might know, forex brokers offer different types of accounts such as micro, STP that has floating spread and no commission, fixed spread, ECN, and etc.

For example, a broker might offer 1:2000 as its maximum leverage to its STP or micro/cent account but the max leverage for its ECN type of account is 1:500.

So when you need very high leverage, you may want to choose the type of account that has the highest leverage.

Trading instruments

As you probably know, forex brokers don’t just offer forex or currency pairs. There are other trading instruments such as indices, shares or stocks, metals, cryptocurrencies, and etc.

Every type of trading instrument comes with different max leverage. Forex brokers don’t offer the same leverage even for all forex pairs. For instance, you can use the highest leverage for the major currency pairs and minor or exotic pairs are offered with lower leverage.

As a rule of thumb the more liquid and less volatile the higher leverage. In other words, you are offered the highest leverage for the pairs that are traded the most and aren’t too volatile, which means they don’t make large moves in a short period of time.

For instance, crypto currencies, exotic pairs, and CFD stocks are too volatile and are traded less so brokers offer lower leverage for them — normally lower than 1:10 or 1:20.

As a result, you should consider the brokers with the highest leverage on the trading instruments that you trade.

Regulation

The factors that we’ve talked about so far are related to the terms and conditions that forex brokers set for their high leverage offers but there’s an external factor that makes brokers decrease leverage for retail traders in some areas or countries.

Some forex financial bodies that regulate and watch forex brokers don’t allow them to offer high leverage to retail traders. The simple reason behind that is since trading on leverage can potentially make people lose a lot of money quickly and a majority of retail traders are prone to do so, therefore, lower leverage is in their best interest.

As a result, retail traders can’t use high leverage if they register with a broker or a branch of a broker that is registered under an EU regulatory body such as FCA (the UK regulator), cysec (the cyprus securities and exchange commission), or any other european regulators. It’s the same for US retail traders who want to open an account with a forex broker regulated in the USA by american regulatory bodies, CFTC and NFA.

The maximum leverage that you can get when you open an account with an EU regulated broker is 1:30 and it’s 1:50 if you’re an american retail trader using a US regulated broker.

The maximum leverage is a lot higher for the forex brokers regulated in other parts of the world. For instance, if you go with an ASIC (australian regulator) regulated broker, you can use a maximum leverage of 1:400 and if brokers are regulated by one of the international regulatory bodies, you can receive a very high leverage of 1:3000 from some of them.

OK, now you’re telling me that I can’t use high leverage if I’m an EU or a US resident?!

You can still use that kind of high leverage forx brokers in some conditions.

How can EU forex traders use high leverage?

As we already know, you can’t use higher than 1:30 as leverage if you are an EU resident having an account in a broker under an EU regulatory body.

The 1:30 is the maximum leverage that brokers can offer for major currency pairs (EURUSD, GBPUSD, USDCHF, USDJPY, NZDUSD, AUDUSD, and USDCAD) according to ESMA (the european securities and markets authority) measures on the provision of contracts for differences (cfds) and binary options to retail investors.

It’s even lower for non-major forex pairs or other trading instruments:

20:1 for non-major currency pairs, gold and major indices;

10:1 for commodities other than gold and non-major equity indices ;

5:1 for individual equities and other reference values;

2:1 for cryptocurrencies;

However, there are two ways that you can use very high leverage as an EU trader.

Become qualified as EPC

First, all that we’ve said so far are related to retail traders so what if you’re a professional trader? Are you still limited to 1:30 if you’re a professional trader?

The answer is no. EU regulators allow forex brokers to offer higher leverage to their professional clients, however, the leverage is not the highest ones — the max that I’ve seen is 1:500.

The question here is how you can qualify as a professional trader or EPC (elective professional clients)?

According to FCA, a trader is considered as EPC if he/she meets at least 2 of these 3 criteria:

The client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters

The size of the client’s financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000

The client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged

Well, as you can see this is not a viable option for many EU traders who want to use high leverage so if you’re one of them, you can pick the next option.

Use an offshore forex broker

The easiest way that you can apply to have access to high leverage as an EU or UK trader is to use an offshore forex broker or register under an offshore regulation of a broker.

Almost all the forex brokers that aren’t regulated or they have a regulation from agencies that have less strict regulations such as FSA (seychelles), IFSC (belize), BVIFSC (british virgin islands), and some others accept EU residents and allow them to use leverages like 1:1000, 2000, or even 3000.

There are even forex brokers that are regulated by some EU or UK regulators but since they are also regulated by offshore regulatory bodies, you can register with their offshore branch and use some offers such as the highest leverages.

For instance, you live in the UK and want to open an account with a forex broker that is regulated by both FCA and IFSC. If you register with their UK branch, you’re under the regulation of FCA so the maximum leverage that you can use is 1:30. On the other hand, if you open an account with their belize branch, you’re under the rules and regulation of IFSC that allows high leverage so you can use very high leverage such as 1:1000 and higher.

How can US forex traders use high leverage?

As it’s mentioned early on, the maximum leverage offered by US-regulated forex brokers, AKA NFA regulated brokers, is 1:50 which I think is more than enough for many traders. But you may want to need more leverage for any reason whether it’s because you open lots of positions at the same time or you use eas such as grid or martingale strategies, and etc.

For whatever reason that you need more leverage, your options are the same as EU traders which means either you need to be a professional trader or go offshore; however, your choices for offshore forex brokers are limited and are not as wide as EU traders.

There are lots of reputable offshore brokers for EU residents but when it comes to US residents, a handful of them accept US clients.

I’ve done a broad search and a comprehensive study on offshore forex brokers accepting US clients that you can find in this post.

Which forex broker has the highest leverage?

FBS, alpari, and justforex offer the highest leverage in the industry, which is 1:3000; however, this kind of leverage is limited to some conditions.

For instance, it’s available in FBS and justforex for the accounts with the equity of $200 or lower — above that amount, it will be adjusted and lowered. In alpari, you can use such a leverage with a maximum lot size of around one standard lot, more or less (see lot size section).

This condition is better when you want to use 1:2000 as leverage. Roboforex has the best situation in this case and you can use such a leverage for the accounts with the equity of up to $5000.

It’s worth noting that this kind of very high leverage is related to currency pairs, specifically major ones. For minor forex pairs or other trading instruments such as indices, CFD stocks, cryptos and etc.; the leverage is lower.

List of forex brokers with the highest leverage

In the following table, you can find all the reputable forex brokers offering the highest leverage in the industry.

There are some sections about the leverage of the brokers that we’ve talked about in detail in this article.

See the following sections for them:

Max leverage (account type)max leverage (trading instrument)leverage structure (forex)regulation

STP,
ECN, copy trading,
fixed spread, islamic

Leverage of 1:3000

Yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

Would this much leverage not be very interesting for martingale trading for instance? One could take on much more martingale trades because of the low margin required , which would reduce the risk of getting wiped out.

What do you think about this, guys? Have you ever worked with this much leverage before?

Yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

What do you think about this, guys? Have you ever worked with this much leverage before?

It won't reduce the risk!

If you have a good strategy then why you haven't try 1:500 or lower?

Mohammad soubra :

It won't reduce the risk!

If you have a good strategy then why you haven't try 1:500 or lower?

Of course you can still get wiped out very easily.

Imagine the following:
lets say you can take 10 losing martingale trades before you get wiped out on a 1:500 account.
With the 1:3000 account you could have position sizes six times as big which would mean that you could handle 12 losing martingale trades before the account blows up if you double on a loss.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

Tobiasbecker :

Of course you can still get wiped out very easily.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

Yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

What do you think about this, guys? Have you ever worked with this much leverage before?

Great, the easiest way to destroy your account!

1:3000 and martingale. Just add the free deposit bonus to the mix -which i am sure the broker offers- and you will end up with a nice juicy cocktail.

Just the hangover. The hangover :)

What do you think about this, guys? Have you ever worked with this much leverage before?

Of course you can still get wiped out very easily.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

I think you better do your math again! The risk or loss based on the stop size is irrespective of leverage or % margin.

If you lose 10 pips for 1 lot ($100 on "xxxusd") then that is 10 piplots ($100) whether that be on 1:100, 1:500 or 1:3000 - it makes no difference.

You will still blow your account in no time!

EDIT: people don't seem to realise that leverage or % margin just alters the maximum amount of volume you can open and order with, but once closed, the difference, whether that be profit or a loss is the same no matter what the leverage! That is why experienced traders always tell newbies to evaluate their risk calculation based on the stop size.

On a cent account, your gains are also in cents and therefore 100 times less that normal accounts but still limited by the same maximum number of lots that brokers allow (many have a limit of 100 lots and many others a limit of 50 lots).

The following table for a normal account shows how quickly it can "blow" your balance, trading for example on EUR/USD or GBP/USD or many other xxx/USD currency pairs:

Consecutive martingale orders
lots
10 pips loss
100 pips loss
1
0.01
$1.00
$10.00
2
0.02
$2.00
$20.00
3
0.04
$4.00
$40.00
4
0.08
$8.00
$80.00
5
0.16
$16.00
$160.00
6
0.32
$32.00
$320.00
7
0.64
$64.00
$640.00
8
1.28
$128.00
$1,280.00
9
2.56
$256.00
$2,560.00
10
5.12
$512.00
$5,120.00
11
10.24
$1,024.00
$10,240.00
12
20.48
$2,048.00
$20,480.00
13
40.96
$4,096.00
$40,960.00
14
81.92
$8,192.00
$81,920.00
max lots (on many brokers)
100.00
$10,000.00
$100,000.00

Consecutive martingale orders	lots	10 pips loss	100 pips loss
1	0.01	$1.00	$10.00
2	0.02	$2.00	$20.00
3	0.04	$4.00	$40.00
4	0.08	$8.00	$80.00
5	0.16	$16.00	$160.00
6	0.32	$32.00	$320.00
7	0.64	$64.00	$640.00
8	1.28	$128.00	$1,280.00
9	2.56	$256.00	$2,560.00
10	5.12	$512.00	$5,120.00
11	10.24	$1,024.00	$10,240.00
12	20.48	$2,048.00	$20,480.00
13	40.96	$4,096.00	$40,960.00
14	81.92	$8,192.00	$81,920.00
max lots (on many brokers)	100.00	$10,000.00	$100,000.00

PS! Actually my table is conservative, because losses are cumulative, so actual values are double the losses shown on this table!

What is leverage? What is a margin?

This lesson will cover the following

What is leverage? What is a margin?

When it comes to forex trading one should take into consideration two extremely vital concepts – the leverage and the margin. This is so, as these concepts could easily cause worries, in case they are not used appropriately. The terms “leverage” and “margin” are related to one and the same idea, but however, in different cases.

What is leverage?

When we refer to leverage, we usually mean the use of borrowed capital in order to expand the potential return of an investment we are intending to make. It favors both the investor and the firm to invest or operate. What is worth noting, however, is that leverage is always related with a higher level of risk. If an investor decides to rely on leverage in order to invest and the investment moves against the investor, his/her losses may appear to be far larger than they would have been, if the investment had not been leveraged. Therefore, it is useful to say that leverage amplifies both profits and losses.

Best forex brokers for united states

Leverage is usually presented with the use of a ratio, for instance, 1:100 or 1:500. This relation states that for every $1 the investor deposits into his/her account, he/she is able to enter into trades worth $100 or $500. With the help of leverage, investors do not necessarily need to have thousands of US dollars in their possession in order to make trades in the market, where only large corporations or institutions could afford to participate several years ago.

In forex extremely high levels of leverage are to be seen, as trading is executed in the market with the largest daily trading volume of all types of financial markets. Brokers allow their customers to use high level of leverage, as it is relatively easy to enter into and to get out of a trade (liquidity). Given the fact that liquidity is that high, traders are able to manage their losing positions in a much easier way.

Currency trading is usually exercised in “contracts” for a standard amount of units called lots. Each lot is worth 100,000 units of a particular currency. In case a trader uses the US dollar for denomination, if he/she enters into a position with one standard lot, then he/she is purchasing or selling 100,000 units of that currency.

Example

In forex, in case a trader has $1,000 dollars, while controlling an entire $100,000 standard lot, then his/her leverage is 1:100. The trader can make deals up to the amount of $100,000, while only owning $1,000 of it.

Now, let us imagine that the trader had the entire $100,000 in his/her possession and his/her account increases in value by $1000. The trader has now expanded his/her bank roll by 1%. That is what is known as a 1:1 leverage. In forex that is not the case, as leverage is created, so that traders do not need to own large amounts of money in order to engage in market trading. The trader uses leverage of 1:100 and the $1,000 profit he/she obtained, actually doubled his/her deposit. Looks like a good deal, right?

However, there is another scenario. Let us imagine that instead of increasing by $1,000, the traders account decreases by $1,000. Using higher levels of leverage boosts ones purchasing power, but also ones exposure to risk. That is why in the forex industry, leverage is often referred to as a double edged sword.

What is a margin?

If a trader is willing to enter into trades with the use of money he/she borrowed, then he/she will need to make a deposit, that represents a certain portion of the actual value of the trade. This deposit is referred to as a requirement for margin or a good faith deposit. What is specific here is, that in most cases investors will be able to withdraw the entire amount of the deposit, if they decide to get out of the trade.

Now is the time to reveal another crucial moment in margin trading. If the strategy a trader follows, does not work and the trader starts to lose money, he/she may eventually come to the point, when a certain portion of the deposit may be lost. The trader experiences the so called margin call. This is a situation, when their margin falls below 50% (below the obligatory maintenance margin). In case a margin call occurs, the broker requires of the customer to deposit additional amount of money, so that the account is restored to or above the minimum maintenance margin, which allows the client to continue trading. This is an insurance for the broker that the trader would eventually pay his/her debt.

Let us look again at the example we provide earlier. In forex, a trader may enter into trades up to $100,000 with a mere $1,000 set aside. The leverage in this case is 1:100. The $1,000 that the trader deposited into his/her account is considered as the initial margin. This is what the trader had to give up in order to engage in the market.

Remember, your margin is the money you give to your broker as a deposit of good faith. The broker requires these margins from everyone and puts them together in order to make huge trades on the inter-bank network. The actual profit or loss you register in the market is dependent on the size of the trade you entered into, and not on the amount of margin required.

What do leverage and margin mean in forex?

New users are often eager to start trading, without first taking into account the importance and impact that the two factors mentioned above could have on their growth and future success.

To invest and trade in currency markets, it is necessary to study in detail how leverage and margin work. That is why, in this article, we will explain everything about them, including how they work so you can put them into practice as soon as possible.

What is leverage?

The term "leverage" refers to the ability to trade or trade with a large amount of money without using your own money (or using a small amount of it). That is, it is done through a loan.

Leverage offers users an opportunity to take risks in the market, increasing the amount of real money they have in their respective accounts in order to potentially increase any profit. For example, if a trader wants to use a leverage of 1:10, it means that every dollar that is exposed to risk actually manages $10 in the market. In this way, all those who wish to trade or invest, use the leverage to maximize their profits but also can increase losses in any particular negotiation or investment.

In the trades that are carried out within forex, the leverage in the offer is, in general, the highest that is available in the market. Likewise, the different leverage options are established by the broker and therefore can vary: 1:1, 1:5, 1:10 or even higher figures. Brokers are in charge of allowing traders to adjust (higher or lower) the level of leverage, but they will also set the limits. For example: the leverage we offer at libertex has a maximum of 1:30. However, customers are free to select a lower level of leverage.

Example of leverage

Imagine that you have $5,000 in your account to carry out operations, so trading with a leverage of 10:1 would give you a power of $50,000. The leverages are determined in proportions, therefore, the leverage that you will have achieved will be 10:1. If the position you opened reaches $5100, you would earn 100% of the profit, which would be $100. The leverage in this case allows you to earn 10 times more the capital with which you started.

Now, consider that your leverage is 1:1 and you must reach $500,000. A leverage of 1:1 means that your investment of $500,000 could also increase to $501,000, but there is a difference. You would be risking your investment of $500,000 to obtain a profit of $1,000, so your earnings would only represent 0.2%.

The reason that leverage and forex trading is so popular is that you do not require $500,000 to invest. A leverage of 1:1 is no longer attractive, when forex offers a leverage of 10:1.

Now, what is margin?

The use of the margin in forex trading is quite common for many users, but at the same time there is a great confusion about the term. The margin is nothing else than a deposit made by a merchant and that fulfills the role of a guarantee that keeps a position open. Often, the margin is confused with a fee for a merchant, but it is not, the margin does not represent the cost of a transaction.

When a trader decides to trade with margin, he should remember that the amount of margin he will need to maintain an open position will depend on the size of the position or the number of open positions. The greater the number of positions, the greater the margin required.

In other words, the margin is an amount of money that is deposited in good faith, to open a position with your broker and insure the same in case of losses.

The broker uses the margin deposited to maintain your position. This basically deposits it together with the margins of all the users and then uses all that amount to open the positions in the currency markets.

The margin is usually expressed as a percentage of the total amount of the position. For example, most forex brokers require a margin of 0.25%, 1%, 2% or even 5%.

As we mentioned earlier, there is a lot of confusion regarding the concept of margin. However, there are different terms that include this word and that you should know to understand what each of them is about, here we explain them:

The margin requirement is the most used and it is about the amount of money that your broker requests to open the position, it is reflected through percentages. On the other hand, the margin of your account is not more than the total amount you have in it.

The used margin is the amount of money that your broker has used to keep your positions open. Although this money is still yours, you can not use it until your positions are closed and your broker returns it or until a margin call occurs. The latter is an amount of money requested by the broker to be deposited in your account and keep your positions open, in the event that the required margin of your account falls below the limit for the losses you have suffered.

Finally, there's usable margin, which refers to the money that is in your account and that you can use to open new positions in the market.

What are the risks of leverage and margin?

Leverage, in spite of being beneficial for many users, is also a double-edged sword, since you will have both winning and losing chances. In the case of leverage, the user has more money to use and, therefore, make more transactions, so if the operation is successful you can increase the amount you want to exchange and increase your profits. But the opposite can also happen.

If the currencies involved in the leverage move in the opposite direction to the user's investment, the loss of money could be considerable. This is where the risk of leverage lies and the reason why traders are advised not to risk more than they accept to lose.

How can I minimize these risks?

Previously we commented that the margin is the amount of money that is deposited to open a position and that it immediately enters into risk depending on the variations that occur in the currency market. However, there are some methods that will help you reduce those risks.

The first method is stop loss. On this occasion the trader selects a rate that will indicate the loss limit of a specific operation. If the operation reaches that rate, it will stop automatically. In this way, you control your investments and do not lose more than you are willing to pay

The second method is take profit, which closely resembles stop loss . The difference is that, in this, a profit rate is set that can be modified (while keeping the position open) and allows the trader to control the negotiation without the need to be regularly observing the possible fluctuations.

While it is true that each business includes risks, there are ways to minimize them. The most advisable thing is to understand all the aspects and terms mentioned above and that involve the world of forex. With them you will learn the best methods and use rationally the leverage and the margin, avoiding losses and, therefore, potentially increasing your profits.

If you decide to try operations with leverage, in libertex we will be happy to offer you the excellent conditions. Our CFD service covers a wide range of asset classes. For beginners, we are pleased to offer you a demo account, through which you can practice trading using leverage, without any risk of losing money. Do not wait any longer!

Leverage in forex trading

Leverage is the ability to use something small to control something big. Specific to foreign exchange (forex or FX) trading, it means you can have a small amount of capital in your account, controlling a larger amount in the market.

Stock traders will call this trading on margin. In forex trading, there is no interest charged on the margin used, and it doesn't matter what kind of trader you are or what kind of credit you have. If you have an account and the broker offers margin, you can trade on it.

The apparent advantage of using leverage is that you can make a considerable amount of money with only a limited amount of capital. The problem is that you can also lose a considerable amount of money trading with leverage. It all depends on how wisely you use it and how conservative your risk management is.

You have more control than you think

Leverage makes a rather boring market incredibly exciting. But when your money is on the line, exciting is not always good, and that is what leverage has brought to FX.

Without leverage, traders would be surprised to see a 10% move in their account in one year. However, a trader using leverage can easily see a 10% move in one day.

But typical amounts of leverage tend to be too high, and it is important for you to know that much of the volatility you experience when trading is due more to the leverage on your trade than the move in the underlying asset.

Leverage amounts

Leverage is usually given in a fixed amount that can vary with different brokers. Each broker gives out leverage based on their rules and regulations. The amounts are typically 50:1, 100:1, 200:1, and 400:1.

50:1: fifty-to-one leverage means that for every $1 you have in your account, you can place a trade worth up to $50. As an example, if you deposited $500, you would be able to trade amounts up to $25,000 on the market.

100:1: one-hundred-to-one leverage means that for every $1 you have in your account, you can place a trade worth up to $100. This ratio is a typical amount of leverage offered on a standard lot account. The typical $2,000 minimum deposit for a standard account would give you the ability to control $200,000.

200:1: two-hundred-to-one leverage means that for every $1 you have in your account, you can place a trade worth up to $200. The 200:1 ratio is a typical amount of leverage offered on a mini lot account. The typical minimum deposit on such an account is around $300, with which you can trade up to $60,000.

400:1: four-hundred-to-one leverage means that for every $1 you have in your account, you can place a trade worth $400. Some brokers offer 400:1 on mini lot accounts but beware of any broker who offers this type of leverage for a small account. Anyone making a $300 deposit into a forex account and trying to trade with 400:1 leverage could be wiped out in a matter of minutes.

Professional traders and leverage

Professional traders usually trade with very low leverage. Keeping your leverage lower protects your capital when you make trading mistakes and keeps your returns consistent.

Many professionals will use leverage amounts like 10:1 or 20:1. It's possible to trade with that type of leverage regardless of what the broker offers you. You have to deposit more money and make fewer trades.

No matter what your style, remember that just because the leverage is, there does not mean you have to use it. In general, the less leverage you use, the better. It takes the experience to really know when to use leverage and when not to. Staying cautious will keep you in the game for the long run.

The balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal.

How to calculate leverage, margin, and pip values in forex

Although most trading platforms calculate profits and losses, used margin and useable margin, and account totals, it helps to understand these calculations so that you can plan transactions and determine potential profits or losses.

Important note! The exchange rates used in this article are for illustrative purposes, so the exchange rates themselves are not updated, since it serves no pedagogical purpose. Foreign exchange rates vary continuously, so current exchange rates may deviate largely from what is presented here. Nonetheless, the exchange rates were accurate when the article was written, and regardless of the current rates, the exchange rates used here still illustrate the principles presented in this article, which do not change.

Leverage and margin

Most forex brokers allow a very high leverage ratio, or, to put it differently, have very low margin requirements. This is why profits and losses vary greatly in forex trading even though currency prices do not change all that much — certainly not like stocks. Stocks can double or triple in price, or fall to zero; currency never does. Because currency prices do not vary substantially, much lower margin requirements are less risky than it would be for stocks. Note, however, that there is considerable risk in forex trading, so you may be subject to margin calls when currency exchange rates change rapidly.

The margin in a forex account is often called a performance bond, because it is not borrowed money but only the equity needed to ensure that you can cover your losses. In most forex transactions, nothing is bought or sold, only the agreements to buy or sell are exchanged, so borrowing is unnecessary. Thus, no interest is charged for using leverage. So if you buy $100,000 worth of currency, you are not depositing $2,000 and borrowing $98,000 for the purchase. The $2,000 is to cover your losses. Thus, buying or selling currency is like buying or selling futures rather than stocks.

The margin requirement can be met not only with money, but also with profitable open positions. The equity in your account is the total amount of cash and the amount of unrealized profits in your open positions minus the losses in your open positions.

Total equity = cash + open position profits - open position losses

Your total equity determines how much margin you have left, and if you have open positions, total equity will vary continuously as market prices change. Thus, it is never wise to use 100% of your margin for trades — otherwise, you may be subject to a margin call. Instead of a margin call, the broker may simply close out your largest money-losing positions until the required margin has been restored.

Leverage = 1/margin = 100/margin percentage

To calculate the amount of margin used, multiply the size of the trade by the margin percentage. Subtracting the margin used for all trades from the remaining equity in your account yields the amount of margin that you have left.

To calculate the margin for a given trade:

Margin requirement = current price × units traded × margin

Example: calculating margin requirements for a trade and the remaining account equity

Required margin = 100,000 × 1.35 × 0.02 = $2,700.00 USD.

Before this purchase, you had $3,000 in your account. How many more euros could you buy?

Remaining equity = $3,000 - $2,700 = $300

Since your leverage is 50 , you can buy an additional $15,000 ( $300 × 50 ) worth of euros:

To verify, note that if you had used all of your margin in your initial purchase, then, since $3,000 gives you $150,000 of buying power:

Total euros purchased with $150,000 USD = 150,000 / 1.35 ≈ 111,111 EUR

Pip values

Because the quote currency of a currency pair is the quoted price (hence, the name), the value of the pip is in the quote currency. So, for instance, for EUR/USD, the pip = 0.0001 USD, but for USD/EUR, the pip = 0.0001 euro. If the conversion rate for euros to dollars is 1.35, then a euro pip = 0.000135 dollars.

Converting profits and losses in pips to native currency

To calculate your profits and losses in pips to your native currency, you must convert the pip value to your native currency.

When you close a trade, the profit or loss is initially expressed in the pip value of the quote currency. To determine the total profit or loss, multiply the pip difference between the open price and closing price by the number of units of currency traded. This yields the total pip difference between the opening and closing transaction.

If the pip value is in your native currency, then no further calculations are needed to find your profit or loss, but if the pip value is not in your native currency, then it must be converted. There are several ways to convert your profit or loss from the quote currency to your native currency. If you have a currency quote where your native currency is the base currency, then you divide the pip value by the exchange rate; if the other currency is the base currency, then you multiply the pip value by the exchange rate.

Example: converting CAD pip values to USD

100,000 CAD × 200 pips = 20,000,000 pips total. Since 20,000,000 pips = 2,000 canadian dollars , your profit in USD is 2,000 / 1.1 = 1,818.18 USD.

However, if you have a quote for CAD/USD , which = 1/ 1.1 = 0.90909 , then your profit is calculated thus: 2000 × 0.90909 = 1,818.18 USD, the same result obtained above.

For a cross currency pair not involving USD, the pip value must be converted by the rate that was applicable at the time of the closing transaction. To find that rate, you would look at the quote for the USD/pip currency pair, then multiply the pip value by this rate, or if you only have the quote for the pip currency/USD, then you divide by the rate.

Example: calculating profits for a cross currency pair

You buy 100,000 units of EUR/JPY = 164.09 and sell when EUR/JPY = 164.10 , and USD/JPY = 121.35 .

Profit in JPY pips = 164.10 – 164.09 = .01 yen = 1 pip (remember the yen exception: 1 JPY pip = .01 yen .)

Total profit in JPY pips = 1 × 100,000 = 100,000 pips .
Total profit in yen = 100,000 pips / 100 = 1,000 yen

Because you only have the quote for USD/JPY = 121.35 , to get profit in USD, you divide by the quote currency's conversion rate:

Total profit in USD = 1,000 / 121.35 = 8.24 USD.

If you only have this quote, JPY/USD = 0.00824 , equivalent to USD/JPY = 121.35 , the following formula converts pips in yen to domestic currency:

Total profit in USD = 1,000 × 0.00824 = 8.24 USD.

Leverage 1 3000

As we know forex laverageis one important thing to get best trade condition depending on traders trading styles. Some traders suggest to take small laverage but in the other opinion traders need high laverage so traders can trade with biggest lot contracts too to increase their profits more faster. At this situation, we choose get high laverage because we can trade with a high volume lot so we can get a maximum profit right?, but remember money management to protect trading equity still have to be counting well. Don’t forget this money management. Because actually laverage equal with drawn-down. More highest the laverage then more maximal the draw down allowed. Laverage in forex is expressed as ratios: 1:1, 1:50, 1:100, 1:200, 1:400, 1:500 and 1:1000.

Simple forex margin calculator

This leverage ratio of 1:100 is translated as following:for every $1 I deposit in my forex broker’s account, my broker in return deposits $100 in my margin account. So, if I deposit $1000 then my broker deposits $100,000 in my trading account.

So with just $1000 of my own money, I can control $100,000 for my trading purposes. By doing so I created a leverage in forex.

Oanda forex margin calculator formula or forex calculator from babypips that we can use to calculate our trading risk ratio to prevent our forex accounts from margin call.

How does forex leverage work?

Trader A has $5000 USD – if trader A has an account leverage of 10:1 and they wish to use $1000 on one trade as margin, they will have exposure of $10,000 in base currency ($1000) = 10 x $1000 = $10,000 (trade value).

Trader B has $5000 USD – if trader B has an account leverage of 100:1 and they wish to use $1000 on one trade as margin, they will have exposure of $100,000 in base currency ($1000) = 100 x $1000 = $100,000 (trade value).

Margin forex is very high risk and leverage should be used wisely. In order to protect you in minimizing risk, some forex brokers have leverage restrictions in place. To check how much leverage you can use on your account please review the table below:

In several brokers like instaforex,exness,fxprimus,fbs forex,tickmill, the laverage allowed up to 1:500 or more on mini,micro cents,or standard account type. Example we open standard forex account at instaforex with 1:1000 laverage and $1000 trading capital. We can trade minimum open lot with 0.01lot which 1 pip equal $0.01, or if open 1.0lot 1pip equal with $1. So, then if we open 10 lot volume then (1/1000) x100% = 0.1% x 10 = 1% risk that we’ve used from our trading equity. And if we using 1:500 with 1000usd and open 10 lot volume then (1/500) x100% = 0.2% x 10 = 2% risk that we’ve used from our trading margin capital. We’ve to realize that forex leverage is a “double-edged sword” it can work for some traders or and it could be against you.

Most forex traders very like and need this high leverage and usually are given more than enough. And of course with 1:1000 laverage you have a power 1000 times to trade with this currency and metal. We’ve to wise in managing our trading margin level if we’re using high laverage, because high laverage forex accounts give the opportunity to open lot with maximum volume transactions. As long you have a great accurate trading system scenario that using stop loss it all fine then, but if you don’t have a good forex trading scenario that using stop loss level ratio or cut and switch trading trading scenario it would be dangerous to our trading capital to get margin call more faster than you imagine. Because many forex traders using high laverage in their account only for scalping. Our suggestion learn and find first a very good forex trading system scenario then you can using high laverage option. According our tested forex trading strategy, better using basics reversal candlesticks forex strategy combined with simple support resistance strategy to get fastest forex signals confirmation as our trading entry. You can open in tickmill,fxprimus,fbs,exness,pepperstone or any other recommended forex brokers that in box lists below.

Leverage of 1:3000

Yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

What do you think about this, guys? Have you ever worked with this much leverage before?

Yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

What do you think about this, guys? Have you ever worked with this much leverage before?

It won't reduce the risk!

If you have a good strategy then why you haven't try 1:500 or lower?

Mohammad soubra :

It won't reduce the risk!

If you have a good strategy then why you haven't try 1:500 or lower?

Of course you can still get wiped out very easily.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

Tobiasbecker :

Of course you can still get wiped out very easily.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

Yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

What do you think about this, guys? Have you ever worked with this much leverage before?

Great, the easiest way to destroy your account!

1:3000 and martingale. Just add the free deposit bonus to the mix -which i am sure the broker offers- and you will end up with a nice juicy cocktail.

Just the hangover. The hangover :)

What do you think about this, guys? Have you ever worked with this much leverage before?

Of course you can still get wiped out very easily.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

I think you better do your math again! The risk or loss based on the stop size is irrespective of leverage or % margin.

If you lose 10 pips for 1 lot ($100 on "xxxusd") then that is 10 piplots ($100) whether that be on 1:100, 1:500 or 1:3000 - it makes no difference.

You will still blow your account in no time!

The following table for a normal account shows how quickly it can "blow" your balance, trading for example on EUR/USD or GBP/USD or many other xxx/USD currency pairs:

Consecutive martingale orders
lots
10 pips loss
100 pips loss
1
0.01
$1.00
$10.00
2
0.02
$2.00
$20.00
3
0.04
$4.00
$40.00
4
0.08
$8.00
$80.00
5
0.16
$16.00
$160.00
6
0.32
$32.00
$320.00
7
0.64
$64.00
$640.00
8
1.28
$128.00
$1,280.00
9
2.56
$256.00
$2,560.00
10
5.12
$512.00
$5,120.00
11
10.24
$1,024.00
$10,240.00
12
20.48
$2,048.00
$20,480.00
13
40.96
$4,096.00
$40,960.00
14
81.92
$8,192.00
$81,920.00
max lots (on many brokers)
100.00
$10,000.00
$100,000.00

Consecutive martingale orders	lots	10 pips loss	100 pips loss
1	0.01	$1.00	$10.00
2	0.02	$2.00	$20.00
3	0.04	$4.00	$40.00
4	0.08	$8.00	$80.00
5	0.16	$16.00	$160.00
6	0.32	$32.00	$320.00
7	0.64	$64.00	$640.00
8	1.28	$128.00	$1,280.00
9	2.56	$256.00	$2,560.00
10	5.12	$512.00	$5,120.00
11	10.24	$1,024.00	$10,240.00
12	20.48	$2,048.00	$20,480.00
13	40.96	$4,096.00	$40,960.00
14	81.92	$8,192.00	$81,920.00
max lots (on many brokers)	100.00	$10,000.00	$100,000.00

PS! Actually my table is conservative, because losses are cumulative, so actual values are double the losses shown on this table!

How much leverage is right for you in forex trades

Understanding how to trade foreign currencies requires detailed knowledge about the economies and political situations of individual countries, global macroeconomics, and the impact of volatility on specific markets. But the truth is, it isn’t usually economics or global finance that trip up first-time forex traders. Instead, a basic lack of knowledge on how to use leverage is often at the root of trading losses.

Data disclosed by the largest foreign-exchange brokerages as part of the dodd-frank wall street reform and consumer protection act indicates that a majority of retail forex customers lose money. The misuse of leverage is often viewed as the reason for these losses. this article explains the risks of high leverage in the forex markets, outlines ways to offset risky leverage levels, and educates readers on ways to pick the right level of exposure for their comfort.

Key takeaways

Leverage is the use of borrowed funds to increase one's trading position beyond what would be available from their cash balance alone.

Forex traders often use leverage to profit from relatively small price changes in currency pairs.

Since leverage, can amplify both profits as well as losses, choosing the right amount is a key risk determination for traders.

Leverage in the forex markets can be 50:1 to 100:1 or more, which is significantly larger than the 2:1 leverage commonly provided on equities and the 15:1 leverage provided in the futures market.

The risks of high leverage

Leverage is a process in which an investor borrows money in order to invest in or purchase something. In forex trading, capital is typically acquired from a broker. While forex traders are able to borrow significant amounts of capital on initial margin requirements, they can gain even more from successful trades.

In the past, many brokers had the ability to offer significant leverage ratios as high as 400:1. This means, that with only a $250 deposit, a trader could control roughly $100,000 in currency on the global forex markets. However, financial regulations in 2010 limited the leverage ratio that brokers could offer to U.S.-based traders to 50:1 (still a rather large amount). this means that with the same $250 deposit, traders can control $12,500 in currency.

So, should a new currency trader select a low level of leverage such as 5:1 or roll the dice and ratchet the ratio up to 50:1? Before answering, it’s important to take a look at examples showing the amount of money that can be gained or lost with various levels of leverage.

Example using maximum leverage

Imagine trader A has an account with $10,000 cash. He decides to use the 50:1 leverage, which means that he can trade up to $500,000. In the world of forex, this represents five standard lots. There are three basic trade sizes in forex: a standard lot (100,000 units of quote currency), a mini lot (10,000 units of the base currency), and a micro lot (1,000 units of quote currency). Movements are measured in pips. Each one-pip movement in a standard lot is a 10 unit change.

Because the trader purchased five standard lots, each one-pip movement will cost $50 ($10 change / standard lot x 5 standard lots). If the trade goes against the investor by 50 pips, the investor would lose 50 pips x $50 = $2,500. This is 25% of the total $10,000 trading account.

Example using less leverage

Let’s move on to trader B. Instead of maxing out leverage at 50:1, she chooses a more conservative leverage of 5:1. If trader B has an account with $10,000 cash, she will be able to trade $50,000 of currency. Each mini-lot would cost $10,000. In a mini lot, each pip is a $1 change. Since trader B has 5 mini lots, each pip is a $5 change.

Should the investment fall that same amount, by 50 pips, then the trader would lose 50 pips x $5 = $250. This is just 2.5% of the total position.

How to pick the right leverage level

There are widely accepted rules that investors should review before selecting a leverage level. The easiest three rules of leverage are as follows:

Maintain low levels of leverage.

Use trailing stops to reduce downside and protect capital.

Limit capital to 1% to 2% of total trading capital on each position taken.

Forex traders should choose the level of leverage that makes them most comfortable. If you are conservative and don’t like taking many risks, or if you’re still learning how to trade currencies, a lower level of leverage like 5:1 or 10:1 might be more appropriate.

Trailing or limit stops provide investors with a reliable way to reduce their losses when a trade goes in the wrong direction. By using limit stops, investors can ensure that they can continue to learn how to trade currencies but limit potential losses if a trade fails. These stops are also important because they help reduce the emotion of trading and allow individuals to pull themselves away from their trading desks without emotion.

The bottom line

Selecting the right forex leverage level depends on a trader’s experience, risk tolerance, and comfort when operating in the global currency markets. New traders should familiarize themselves with the terminology and remain conservative as they learn how to trade and build experience. Using trailing stops, keeping positions small, and limiting the amount of capital for each position is a good start to learning the proper way to manage leverage.

So, let's see, what we have: after examining more than 400 forex brokers, I found the brokers with the highest leverage. See brokers with a leverage of 1000, 2000, and even 3000. At leverage 1 3000