Exness Leverage:
Exness offers its traders Leverage so that the trader has more significant capital to trade with than they initially deposited. There can be unlimited Leverage available on the Exness. Let us dive deeper and understand more about Leverage and how you can calculate it.
What is Leverage?
You must be wondering what the meaning of Leverage is. It is like a loan that the broker offers to the trader. The Leverage enables people to make large trades even if they are without a small deposit. As a result, it increases the purchasing power of the traders. It is represented in the form of a ratio. This ratio is between the following:
- Trader's funds
- Borrowed funds
For example, this ratio can be 1:200, 1:2000, or 1: Unlimited.
The maximum amount of Leverage that can be used depends on your trading terminal. It is when you are trading most forex pairs.
On Meta Trader 4, the Leverage is 1: Unlimited. And on the trading platform, Meta Trader 5, the Leverage is 1:2000. It is available for account types:
- Standard account
- Standard Plus account
- Standard Cent account
- Pro account
- Zero account
- Raw Spread account
The amount of Leverage depends on various factors. It is based on the account equity.
Unlimited Leverage on Exness:
It enables you to trade with minimal margin. In this way, you can attempt various strategies and open larger positions. The exact ratio for this type of Leverage is 1:2 100000000. It is available for many accounts when you are trading on Meta Trader MT4:
- Exness's Standard account
- Standard Cent account
- Standard Plus account
- Professional account
- Raw Spread account
- Zero account
Unlimited Leverage has higher risks and can cause significant capital losses. That's why it is preferable for experienced traders. You must complete specific requirements and conditions before using the unlimited Leverage. These conditions or prerequisites are as follows:
- The equity should be less than $1000.
- You should close five lots (500 cents) and ten positions on all live accounts.
- If you want to select 'Unlimited Leverage,' it is available in the 'Personal area.' But it is only available in the 'Personal area' once you have completed all the requirements.
Leverage Limitation on Exness's accounts:
After you have chosen the 'Unlimited Leverage' option, the maximum available Leverage on your account will change. It will change to the level when your account equity surpasses a fixed amount. You can understand from the table below the account equity and leverage requirements.
| Account Balance | Maximum Leverage |
|---|---|
| $0-999 (Only for MT4) | 1: Unlimited |
| $0-4999 | 1:2000 |
| $5000-$14999 | 1:1000 |
| $15000-29999 | 1:600 |
| $30000-59999 | 1:400 |
| $60000-199999 | 1:200 |
| $200000-more | 1:100 |
Dynamic Margin Requirements on Exness:
These requirements change as the leverage changes. They are dynamic for most trading platforms. The leverage and margin requirements are inversely proportional. It means that if one thing is more significant, the other will be lower, and vice versa.
In the conditions given below, the Leverage changes automatically.
- The Leverage changes automatically half an hour before the daily market break. (For gold trading)
- It changes before the weekends and holidays.
- When the equity of your account changes
- When important economic news breaks out
- When the company's financial report comes, the Leverage changes automatically half an hour before the stock market closes and 20 minutes before it reopens.
Fixed Margin Requirements on Exness:
For some instruments, these requirements are set. They do not change regardless of the leverage changes. These includes:
- Exotic
- Crypto
- Energies
- Stocks
- And Indices instrument groups
How to Calculate Margin on Exness's platforms:
It is important to note that the margin is calculated differently for different trading platforms. For example, Exness's platform's margin calculation depends on Leverage. Therefore, it is based on the Leverage you use. But, as we have discussed above, some platforms may have the margin requirements set fixed.
Margin requirements depending on Leverage:
Margin = Lot x Contract Size / Leverage Size
Let me explain this to you through this example. We have four lots of EURUSD with a Leverage of 1:1000.
Lots = 4
Contract Size = 100000 EUR
Leverage Size = 1000
Margin = 2 x 100,000 / 1000 = 200 EUR
You should always calculate the margin in base currency.
How Leverage affects your trading:
A sudden stop or any mishap can be alarming for anyone in forex trading. However, we have risk management techniques to solve this problem. These techniques allow you to try various trading conditions. In this way, you can be better prepared. So, let us see how Leverage can affect your trading and how you can handle such a situation.
A stop-loss can automatically close your position. It happens when your margin level extends to a certain level. This level is 0% in most cases. The mechanism of the method call is alike. But it does not close the position automatically. It only notifies or alerts you of the position. In this case, it will occur faster when the margin level is 60%.