Take Advantage of Exness:
Exness offers leverage to its traders so that traders have more significant capital to trade with than they previously deposited. There is unlimited leverage available in Exness. Let's dig deeper and understand more about leverage and how you can calculate it.
What is leverage?
You have to ask yourself what leverage means. It's like a loan that a broker offers to a trader. Leverage allows people to make large trades, even if they do not have a small deposit. As a result, this increases the purchasing power of merchants. It is represented in the form of a proportion. This relationship is between the following:
- Trader's fund
- Borrowed funds
For example, this ratio could be 1:200, 1:2000 or 1: Unlimited.
The maximum amount of leverage that can be used depends on your trading terminal. This is when you trade most currency pairs.
In Meta Trader 4, the leverage is 1: Unlimited. And on the trading platform, Meta Trader 5, the leverage is 1:2000. It is available for any type of account:
- Standard account
- Standard Plus Account
- Standard Penny Account
- Pro Account
- Zero Account
- Gross Spread Account
The amount of leverage depends on several factors. It is based on the equity of the account.
Unlimited leverage activated (Exness Unlimited Leverage):
This allows you to trade with a minimum margin. In this way, you can try different strategies and open larger positions. The correct ratio for this type of leverage is 1:2 100000000. It is available for multiple accounts when trading on Meta Trader MT4:
- Exness Standard Account
- Standard Penny Counter
- Standard Plus Account
- Professional account
- Gross Spread Account
- Zero account
Unlimited leverage carries increased risk and can lead to significant capital losses. That is why it is preferred by experienced traders. You must complete certain terms and conditions before using the unlimited leverage. The requirements or prerequisites are as follows:
- The share capital must be less than $1000.
- You need to close five lots (500 cents) and ten positions on all live accounts.
- If you want to select 'Unlimited Leverage', it is available in the 'Personal Area'. But it is only available in the 'Personal Area' after completing all the requirements.
How to choose the type of leverage
When creating a new trading account, you have the option to choose the maximum level of leverage. In addition, users can customize the type of leverage for existing accounts.
To do this, click on the Settings button (represented by three dots) next to the trade button for the desired account. A menu will appear where you need to select "Change maximum leverage."
In the pop-up window, you can select the desired leverage limit and confirm your choice by clicking on the "set maximum leverage" button. Please note that the "1: Unlimited" mode (exness unlimited leverage) is available only under certain conditions, as mentioned above.
Leverage limits on Exness accounts:
Once you select the 'Unlimited Leverage' option, the maximum leverage available in your account will change. The leverage will change to a level when the capital of your account exceeds a fixed amount. You can understand in the table below the capital and leverage requirements of the account.
|$0-999 (Hanya untuk MT4)
|1: Tak terbatas
Dynamic margin requirements in Exness:
These requirements change as leverage changes. These requirements are dynamic for most trading platforms. The leverage and margin requirements are inversely proportional. This means that if one thing is more significant, the other will be less.
Under the conditions detailed below, the leverage changes automatically.
- The leverage automatically changes half an hour before the daily market break. (For gold trading)
- This changes before weekends and holidays
- If the capital of your account changes
- When important economic news appears
- When a company's financial statements arrive, the leverage automatically changes half an hour before the stock market closes and 20 minutes before it reopens.
Fixed margin requirements on Exness:
For some instruments, this requirement is established. They do not change regardless of changes in leverage. These include:
- And groups of indexed instruments
How to calculate the margin on the Exness platform:
It is important to note that margins are calculated differently for different trading platforms. For example, the calculation of the margin of the Exness platform depends on the leverage. Therefore, it is based on the leverage you use. But, as we discussed earlier, some platforms may have fixed set margin requirements.
The margin requirements depend on the Leverage:
Margin = Lot x contract size / Leverage size
Let me explain this to you through this example. We have four lots of EURUSD with a leverage of 1:1000.
Many = 4
Contract size = 100000 EUR
Leverage size = 1000
Margin = 2 x 100,000 / 1000 = 200 EUROS
You should always calculate the margin in the base currency.
How leverage affects your trades:
Any sudden stop or drop can be alarming for anyone in forex trading. However, we have risk management techniques to address these issues. These techniques allow you to test different trading conditions. This way, you can be better prepared. So, let's take a look at how leverage can affect your trades and how you can handle such situations.
Stop-loss can close your position automatically. This happens when your margin level is extended to a certain level. This level is 0% in most cases. The mechanism of calling this method is the same. But it does not close the position automatically. Simply notifies or informs you of the position. In this case, this will happen faster when the margin level is 60%.