How does Forex Leverage work?

Forex Leverage

What is Forex Leverage?

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

Examples of Forex Leverage:

Forex Trader A has $5000 USD:

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

Forex Trader B has $5000 USD:

If Forex Trader B has an account leverage of 100:1and they wish to use $1000 on one Forex 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's standard Forex leverage starts at 100:1. The maximum Forex 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 Forex 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 Forex broker and will not provide you with investment or personal trading advice. For such advice, please consult a registered financial advisor. For Forex market news and commentary, please see the Vantage FX News Centre.

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

In order to assist you in minimising risk, we have Forex leverage restrictions in place. To check how much Forex leverage you can use on your MT4 Forex trading account, please review the table below:

500 : 1$500$5,000
400 : 1$500$10,000
300 : 1$500$50,000
200 : 1$500$100,000
100 : 1$100$100,000+
50 : 1$100$100,000+
25 : 1$100$100,000+
1 : 1$100$100,000+

How to Submit a Forex Leverage Change Request:

Use the below link to request a Forex leverage change to your Vantage FX MetaTrader 4 or MetaTrader 4 for Mac account.

Change Leverage

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