Leverage enables traders on Exness to control larger positions in the market with smaller initial deposits. This guide covers how leverage operates, its impact on trading, and best practices for safe use of leverage.
Understanding leverage and its impact
Using leverage in trading allows you to borrow from your broker to open larger positions than relying solely on your own capital. For example, using 100 timesleverYou only need to use $100 of your own funds to control a position of $10000.
| leverage ratio | Required capital | Controlled position size | Risk level | The most suitable |
| 1:10 | $100 | $1,000 | 低 | Beginners and cautious traders |
| 1:50 | $100 | $5,000 | intermediate | Intermediate traders |
| 1:100 | $100 | $10,000 | rising-falling | Experienced traders |
| 1:200 | $100 | $20,000 | 高 | High risk strategy |
| 1:500 | $100 | $50,000 | Extremely high | Advanced traders with strong risk management |
| 1:2000 | $100 | $200,000 | Extremely high | Professional traders |
Explanation:Higher leverage increases both potential profits and potential losses, making it only suitable for traders who are confident in their trading strategy.
The main characteristics of Exness leverage
| characteristic | detailed information | How it benefits traders |
| Dynamic leverage | Automatically adjust based on trading volume and market conditions | Reduce risk in a volatile market |
| Flexible leverage selection | Traders can choose a maximum leverage of 1:2000 based on their own experience. | Provide flexibility to adapt to different strategies |
| There is no maximum limit for foreign exchange | For certain accounts, unlimited leverage is provided. | Maximize the trading ability of professionals |
| Risk management tools | Stop loss, profit taking, and moving stop loss are available | Help reduce losses and lock in profits |
| Negative balance protection | Ensure that your losses do not exceed the account balance | Protecting traders from heavy debt |
| Instant margin addition notice | If the margin level is too low, the trader will be notified | Prevent account liquidation |
Detailed calculation of margin requirements
The leverage effect affects the amount of margin (collateral) required to initiate a transaction. The following is a detailed breakdown:
| instrument | lever | Position size | NECESSARY MARGIN | Typical interest rate spread | Margin level (%) |
| EUR/USD | 1:200 | $10,000 | $50 | 0.1 point | 100% |
| GBP/USD | 1:500 | $20,000 | $40 | 0.2 points | 50% |
| Gold (USD/USD) | 1:100 | $15,000 | $150 | 1.0 point | 100% |
| NASDAQ Index | 1:50 | $5,000 | $100 | 2.0 points | 80% |
| Bitcoin (BTC/USD) | 1:20 | $2,000 | $100 | 30.0 o'clock | 150% |
| Crude Oil (WTI) | 1:100 | $30,000 | $300 | 5.0 points | 100% |
Explanation:A lower leverage ratio requires more margin, but reduces the risk of rapid account losses.
Step by Step Guide: How to Adjust Leverage Ratios in Exness
If you want to adjust your leverage ratio on Exness, please follow these steps:
- Log in to your Exness account
- Go to Exness and log in with your credentials.
- Navigate to 'Personal Area'
- Click on 'Personal Area' and select the account you want to adjust.
- Select leverage settings
- Click on 'Settings' and select' Leverage '.
- Adjust leverage ratio
- Select the desired leverage ratio from the drop-down menu (e.g. 1:50, 1:2000).
- Save changes
- Click 'Confirm' to apply the new leverage settings. These changes will take effect immediately.
Comparison of the Extension of Leverage Options on Exness Accounts
| Account Type | Maximum leverage | Minimum deposit amount | Spread | commission | Trading Tools |
| standard | Up to 1:2000 | $1 | Starting from 0.3 o'clock | 无 | Foreign exchange, metals, cryptocurrencies |
| Standard Cent | Up to 1:2000 | $1 | Starting from 0.5 o'clock | 无 | foreign exchange |
| major | Up to 1:2000 | $200 | Starting from 0.1 o'clock | 无 | Foreign exchange, metals, indices |
| Original spread | Up to 1:2000 | $500 | Starting from 0.0 o'clock | $3.5 per hand per side | Foreign exchange, metals |
| Zero point difference | Up to 1:2000 | $500 | Fixed at 0.0 points | $3.5 per hand per side | Foreign exchange, commodities |
How leverage affects profits and losses
| leverage ratio | Account balance | Trading volume (lots) | profit potential | potential losses | Risk level |
| 1:10 | $1,000 | zero point one | $100 | $100 | 低 |
| 1:50 | $1,000 | zero point five | $500 | $500 | medium-sized |
| 1:100 | $1,000 | one | $1,000 | $1,000 | 高 |
| 1:500 | $1,000 | two | $2,000 | $2,000 | Extremely high |
| 1:2000 | $1,000 | four | $4,000 | $4,000 | Extremely high |
Explanation:Higher leverage increases the likelihood of profit, but at the same time significantly increases the risk of huge losses.
Expanding risk management strategies using leverage
| tool | How does it help | When to use it |
| Stop loss | Automatic liquidation to prevent significant losses | Used in all transactions to limit potential losses. |
| target profit | Lock in profits when reaching a specific price level | To ensure profitability when achieving price targets |
| Mobile stop loss | Adjust with market dynamics to protect profits | Useful for trend assets in volatile markets |
| Notice of Margin Increase | Notify when the margin level is too low | Help avoid forced liquidation |
| Negative balance protection | Prevent the account from falling into debt | It is crucial for high leverage accounts |
| diversification | Spread risks across multiple tools | Reduce the impact of market volatility |
Best practices for safe use of leverage
| tip | Why is this important |
| Starting from lower leverage | Especially for novice traders, it can minimize risk. |
| Use stop loss and take profit | Help you protect your capital in a volatile market |
| Regularly monitor the margin level | Prevent unexpected margin recovery and account settlement |
| Diversify your trades | Spread risks across various tools |
| Understand market trends | Assist you in adjusting leverage ratios based on market fluctuations |
conclusion
leverIt is a powerful tool that can enhance your trading potential, but it also brings significant risks. Understanding how leverage operates on Exness and using appropriate risk management strategies can help you maximize your trading experience while minimizing potential losses.
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Frequently Asked Questions (FAQs)
How does leverage affect margin requirements?
Higher leverage reduces the margin required to open a position, allowing you to control larger positions with less capital.
