Leverage Basics
Leverage is a trading tool that lets you control more money than you have. It works like this:
✓ Without leverage: Invest $100, make or lose based on just that $100
✓ With leverage: Invest $100 with 1:2000 leverage and you now control a $200,000 position
How It Works
Think of leverage as a force multiplier for trading:
You deposit a small amount (your "margin")
Monaxa offers leverage so you can trade with much more capital
More capital makes small market movements way more impactful
The Catch
The same multiplier effect applies to losses! Higher leverage means:
Bigger possible profits
Bigger possible losses
Your trade can be closed automatically if prices move againts you
Choices
Monaxa offers a wide range of leverage levels to suit any trading style:
✓ Self-trading accounts: 1:10, 1:50, 1:100, 1:200, 1:500, 1:1000, or 1:2000
✓ Copy trading and PAMM accounts: 1:10, 1:50, 1:100, 1:200, or 1:500
Leverage May Vary
Think of the leverage levels as an upper limit:
✓ The actual leverage may differ depending on the instrument and trade volume
✓ While most times you can get 1:500 leverage on low volatility instruments, for higher volatility instruments, the leverage availability drops.
✓ Of course, you can always opt in for a lower leverage as compared to what’s offered
Forex Majors Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
150,000 |
2000 |
150,001 |
500,000 |
1000 |
500,001 |
2,000,000 |
500 |
2,000,001 |
8,000,000 |
200 |
8,000,001 |
Unlimited |
100 |
Forex Minors Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
150,000 |
2000 |
150,001 |
500,000 |
1000 |
500,001 |
2,000,000 |
500 |
2,000,001 |
8,000,000 |
200 |
8,000,001 |
Unlimited |
100 |
Forex Exotic Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
50 |
50,001 |
3,000,000 |
25 |
3,000,001 |
Unlimited |
10 |
Crypto Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
50 |
50,001 |
3,000,000 |
30 |
3,000,001 |
Unlimited |
10 |
Stocks CFD Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
20 |
50,001 |
unlimited |
10 |
Indices Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
100 |
50,001 |
150,000 |
50 |
150,001 |
3,000,000 |
25 |
3,000,001 |
Unlimited |
10 |
Energies Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
100 |
50,001 |
150,000 |
50 |
150,001 |
3,000,000 |
25 |
3,000,001 |
Unlimited |
10 |
Commodities Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
200 |
50,000 |
3,000,000 |
100 |
3,000,000 |
Unlimited |
50 |
Futures CFD Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
Unlimited |
10 |
Exposure Value Formula= Lot size x Contract size x conversion rate = Exposure Value
Contract size for each instrument can be seen on platform symbol info
Margin requirement formula= Exposure value / leverage
Forex Majors Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
150,000 |
2000 |
250,001 |
500,000 |
1000 |
500,001 |
2,000,000 |
500 |
2,000,001 |
Unlimited |
200 |
Forex Minors Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
150,000 |
2000 |
250,001 |
500,000 |
1000 |
500,001 |
2,000,000 |
500 |
2,000,001 |
Unlimited |
200 |
Forex Exotic Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
50 |
50,001 |
3,000,000 |
25 |
3,000,001 |
500,000 |
20 |
5,000,001 |
Unlimited |
10 |
Energies Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
10,000 |
2000 |
10,001 |
50,000 |
1000 |
50,001 |
100,000 |
500 |
100,001 |
250,000 |
200 |
250,001 |
Unlimited |
100 |
Indices Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
50,000 |
100 |
50,001 |
100,000 |
50 |
100,001 |
250,000 |
25 |
250,001 |
Unlimited |
10 |
Shares Leverage Tiers
Exposure Value (USD) |
Leverage |
0 |
5,000 |
20 |
50,001 |
150,000 |
15 |
150,001 |
300,000 |
10 |
300,001 |
Unlimited |
5 |
Exposure Value Formula= Lot size x Contract size x conversion rate = Exposure Value
Contract size for each instrument can be seen on platform symbol info
Margin requirement formula= Exposure value / leverage
Forex Majors Leverage Tiers
Equity (USD) |
Leverage |
0 |
499.99 |
2,000 |
500 |
4,999.99 |
1,000 |
5,000 |
19,999.99 |
500 |
20,000 |
99,999.99 |
200 |
100,000 |
Unlimited |
100 |
Forex Minors Leverage Tiers
Equity (USD) |
Leverage |
0 |
499.99 |
2,000 |
500 |
4,999.99 |
1,000 |
5,000 |
19,999.99 |
500 |
20,000 |
99,999.99 |
200 |
100,000 |
Unlimited |
100 |
Forex Exotic Leverage Tiers
Equity (USD) |
Leverage |
Any amount |
200 |
Crypto Leverage Tiers
Equity (USD) |
Leverage |
Any amount |
100 |
Energies Leverage Tiers
Equity (USD) |
Leverage |
Any amount |
100 |
Indices Leverage Tiers
Equity (USD) |
Leverage |
Any amount |
100 |
Stocks CFD Leverage Tiers
Equity (USD) |
Leverage |
Any amount |
30 |
FX pairs
Margin Requirement = Lot Volume x Contract Size / Leverage x Margin
Metals
Margin Requirement = Lot Volume x Contract Size x Market Price /Leverage x Margin Percentage / 100
Cryptocurrencies CFD, Energies CFD, Stock CFD, Index Future CFDs
Margin Requirement = Lot Volume x Contract Size x Market Price x MarginPercentage / 100
Contract size & margin percentage for each instrument can be seen on MT4 market watch specification