Exness offers its traders leverage so that traders have more significant capital to trade than they previously invested. Unlimited leverage is available at Exness. Let's go deeper and learn more about leverage and how you can calculate it.
What is leverage?
You must be wondering what leverage means. This is similar to a loan that a broker offers to a trader. Leverage allows people to make large transactions even if they don't have a small deposit. As a result, this increases the purchasing power of traders. It is represented as a coefficient. This ratio is between the following indicators:
- Borrowed funds of the trader's fund
- Borrowed funds
For example, this ratio can be 1:200, 1:2000, or 1:Unlimited.
The maximum leverage that can be used depends on your trading terminal. It is at this point that you trade most currency pairs.
On Meta Trader 4, the leverage is 1: Unlimited. And on the MetaTrader 5 trading platform, the leverage is 1:2000. This is available for account types:
- Standard Account
- Standard Cent Account
- Standard Professional Accountr
- Zero Spread Account
- Zero account
- The account of the unprocessed spread
The amount of leverage depends on various factors. It is based on the account balance.
Unlimited leverage (Exness unlimited Leverage):
This allows you to trade with a minimum margin. This way you can try different strategies and open larger positions. The correct ratio for this type of leverage is 1:2 1000000000. It is available for multiple accounts when you trade on the MetaTrader MT4:
- Standard Exness Account
- Standard cent account
- The Standard Plus account
- Professional account
- The account of the unprocessed spread
- Zero account
Unlimited leverage carries a higher risk and can lead to significant capital losses. That is why it is preferred by experienced traders. You must comply with certain terms and conditions before using unlimited leverage. The requirements or prerequisites are as follows:
- The net worth must be less than $1,000.
- You must close five lots (500 cents) and ten positions on all real accounts.
- If you want to select 'Unlimited Leverage,' it is available in the 'Personal area'. But it is only available in the 'Personal area' after you complete all the requirements.
How to choose the type of leverage
When creating a new trading account, you have the option to select the maximum leverage level. In addition, users can set up the type of leverage for existing accounts.
To do this, click the Settings button (indicated by three dots) next to the trade button for the desired account. A menu will appear where you need to select "Change maximum leverage".
In the pop-up window, you can select the desired leverage limit and confirm your choice by clicking on the "Set maximum leverage" button. Please note that the "1: Unlimited" (exness unlimited leverage) mode is only available under certain conditions, as mentioned earlier.
Leverage limits on Exness accounts:
Once you select the "unlimited leverage" option, the maximum leverage available in your account will change. The leverage will change to a level when the funds in your account exceed a fixed amount. From the table below, you can understand the requirements for funds in the account and leverage.
|$0-999 (Hanya untuk MT4)
|1: Tak terbatas
Dynamic margin requirements in Exness:
These requirements change as the leverage changes. These requirements are dynamic for most trading platforms. The requirements for leverage and margin are inversely proportional. This means that if something is more significant, the other will be lower, and vice versa.
If the conditions listed below are met, the leverage changes automatically.
- The leverage changes automatically half an hour before the day break in the market. (For gold trading)
- This changes before weekends and holidays.
- If your account balance changes
- When important economic news appears
- When the company's financial statements are received, the leverage is automatically changed half an hour before the stock market closes and 20 minutes before it reopens.
Fixed margin requirements in Exness:
This requirement is set for some tools. They do not change regardless of the change in leverage. These include:
- And groups of index tools
How to calculate margin on the Exness platform:
It is important to note that the margin is calculated differently for different trading platforms. For example, the margin calculation of the Exness platform depends on the leverage. Therefore, it is based on the leverage you use. But as we discussed above, some platforms may have fixed margin requirements.
Margin requirements depend on leverage:
Margin = Lot x Contract size / Leverage size
Let me explain this to you with an example. We have four EUR USD lots with a leverage of 1:1000.
A lot = 4
Contract size = 100,000 euros
Leverage size = 1000
Margin = 2 x 100,000 / 1000 = 200 euros
You should always calculate the margin in the base currency.
How does Leverage affect your trading:
Any sudden stop or malfunction can cause alarm to anyone who is engaged in Forex trading. However, we have risk management methods to solve this problem. These methods allow you to try different trading conditions. This way you can be better prepared. So let's take a look at how leverage can affect your trading and how you can handle situations like this.
A stop loss can automatically close your position. This happens when your margin level reaches a certain level. In most cases, this level is 0%. The mechanism for calling this method is the same. But it does not close the position automatically. It just notifies you of the position. In this case, it will happen faster when the margin level is 60%.