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Leverage
| In forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make larger profits, and at the same time keeps risk capital to a minimum. For example, if you choose 1:400 leverage, which mean that a $50 deposit could execute a buy or sell of $20,000 worth of currencies. Similarly, with $500 you could trade with $200,000. Without the proper risk management, this high degree of leverage can lead to large losses as well as gains. | ||
Deposit Amount |
Leverage |
|
| $25 - $5,000 | Up to 1:400 | |
| $5,000 -$50,000 | Up to 1:200 | |
| $50,000 + | Up to 1:100 | |
*Margin Call 80%, Stop Out 50% When margin level hits 80% the mt4 platform will issue a margin call warning you of low margin and more money is need to be deposited to keep the positions open. If the margin reaches 50% the mt4 will begin to close positions starting with least profitable. |
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