Leverage
Leverage is the percentage (%) of borrowed capital allowed by your broker to use when you open a trade position. Typically in Stock market when you buy 100 shares of a company trading at $10 per share, you are required $1,000 to open the trade. Some stock brokers would let you borrow money from them, most cases it is 50% of the total stock value. So instead of $1,000 you are now only required to have $500. This helps traders to buy more shares with same amount of money.
Margin
Margin and leverage are concepts that go hand-in-hand in currency trading. Margin is expressed as the percentage of position size (e.g. 5% or 1%).On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000.
Actual Required Margin would change by Leverage Level
| Leverage | Amount Traded | Required Margin |
|---|---|---|
| 1:1 | $100,000 | $100,000 |
| 50:1 | $100,000 | $2,000 |
| 100:1 | $100,000 | $1,000 |
| 200:1 | $100,000 | $500 |
| 500:1 | $100,000 | $200 |
IC-FX Leverage
| Equity Amount | Leverage Level | Leverage Level per Exposure |
|---|---|---|
| IC-FX Account | ||
| $500 ~ $49,999 | Up to 500:1 | If total open position becomes 50 lots for currency pairs, account leverage could be 200:1 |
| $50,000 ~ $99,999 | Up to 200:1 | If total open position becomes 100 lots for currency pairs, account leverage could be 100:1 |
| $100,000 ~ | Up to 100:1 | If total open position becomes 100 lots for currency pairs, account leverage could be 50:1 |
| ECN Account | ||
| $50,000 ~ $99,999 | Up to 200:1 | Leverage not changed. |
| $100,000 ~ | Up to 100:1 | |