What are Online Foreign Exchange Trading Leverage & Margin

Leverage is a kind of temporary loan given the trader by the broker, which enables the trader to trade positions larger than the amount of funds in their account. Leverage is presented in the form of a multiplier that shows how much bigger an open position is than the margin (the actual investment amount) against which it is opened.
For example, in order to open a $10,000 position you can use a margin of 25$ with a leverage of 1×400: $25×400=$10,000.

Margin is the actual amount that you invest in a position, and is expressed as the percentage of the overall leveraged position size. For example, if the leverage is 1X400, the margin will be 1/400=0.25%. So if the position size is $10,000 the used margin will be $10,000X0.25%=$25 Used Margin.?

Example

The Leverage we offer

Currencies

• Maximum leverage 1X400
• Minimum leverage 1×2
• Minimum margin (in USD) $2.5
• Minimal lot size: 1,000 units

Commodities

• Maximum leverage 1X100
• Minimum leverage 1×2
• Minimum margin (in USD) – depends on commodity type ($5 for Silver)
• Minimal lot size: 10 units

Indices

• Maximum leverage 1X100
• Minimum leverage 1×2
• Minimum margin (in USD) – depends on index type ($12 for SPX500)
• Minimal lot size: 1 unit

How Can I change my leverage level with the platform?

eToro’s flexible WebTrader platform enables you to edit the leverage level and margin of each position to suit your personal risk-reward strategy with just one click.

Please note that the default “Responsible Trading” settings do not allow you to use leverages above 1×100. To disable “Responsible Trading” click on your username at the top right corner of the interface and choose settings. Then proceed to enable high leverage trading. Please keep in mind that the higher your leverage the higher your risk.
The leverage available on positions carried over the weekend may vary. For more information please see over weekend section.