Leverage is a powerful tool that allows traders to make trades with more money than they have deposited in their trading accounts. Trading wisely with the leverage system can work in your favor, and bring in higher profits.
Leverage can mean that for every $1 you invest, we provide you $200 in trading power. This is the recommended leverage with higher profitable chances when the market fluctuates.
CMTrading offers up to 400 to 1 leverage - For FX this means that a $1,000 USD margin deposit would enable a trader to buy or sell up to $400,000 worth of currencies.
What does that mean exactly? It affects the amount needed to open a portion, leverage allows you to open larger with less collateral
Example on EUR/USD - the amount of money need to open the position
Leverage | Lot Size | Volume | Margin Needed | PIP Value |
100 | 1.00 | 100,000 | $1,000 | $10 |
200 | 1.00 | 100,000 | $500 | $10 |
300 | 1.00 | 100.000 | $333.00 | $10 |
!!Leverage is a double-edged sword, although leverage increases your profit it can also increase your losses - trade sensibly and responsibly!!
The list below will show you the leverage based on the Margin Percentage requirement of each each
