Forex Leverage Explained

Leverage is defined as the use of borrowed capital, such as “margin” allowing the trader to gain access to larger sums of capital. This can heighten profits and losses and should be used wisely.

How does Leverage work?

Example:

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).

What Leverage does Vantage FX offer?

Vantage FX standard leverage starts at 100:1. The maximum leverage Vantage FX may offer is up to 500:1. This is only for approved accounts and funds approved for leverage greater than 100:1 will be limited.

If you wish to get access to higher leverage please note this on the application or contact us. By submitting an increase in trade leverage request you accept that this can result in high risk and severe or total account loss. Vantage FX is a non-advisory general advice broker and will not provide you with investment or personal advice. For such advice, please consult a registered financial advisor.

Margin Forex is very high risk and leverage should be used wisely.

In order to assist you in minimising risk, we have leverage restrictions in place. To check how much leverage you can use on your account please review the table below:

Available Leverage 
Minimum Required Account Equity
Maximum Account Equity
500 : 1
$500
$10,000
400 : 1 $500
$25,000
300 : 1 $500
$100,000
200 : 1 $500
$250,000
100 : 1 $100
$500,000
50 : 1
$100
$500,000+

 

Online Leverage Change Request

Use the below form to request a leverage change to your Vantage FX MetaTrader account.

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