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

Position Size Leverage Margin % Used Margin Balance Usable Margin
2,000,000 USD X400 0.25% 5,000 USD 100,000 95,000
10,000 USD X50 2% 200 USD 1,200 1,000
20,000 USD X50 2% 400 USD 2,800 2,400

The Leverage we offer

Currencies

Commodities

Indices

 

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.

Leverage and Margin

Leverage and Margin

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Did you know?

Responsible use of leverage and margin can prevent losses and lead to steady profits. Find out how today.

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