XS, as a leading global broker, offers significant leverage options across a diverse range of asset classes, enabling traders to enhance their trading strategies and potential returns.

What is Leverage?

Leverage in trading involves borrowing a certain amount of the money needed to invest in something. In the case of XS, this means a trader can open a larger position with a relatively small amount of invested capital. Leverage is expressed as a ratio, such as 1:100, indicating that a trader with $1,000 in their trading account can hold a position worth $100,000.

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Maximum Leverage Offerings at XS

Currencies:

XS allows for maximum leverage of 1:500 on major, minor, and exotic FX pairs. This high level of leverage is ideal for the Forex market, known for its high liquidity and relatively lower volatility compared to other markets.

Metals:

Traders looking to invest in metals like Gold, Silver, Platinum, and Palladium can utilize leverage up to 1:200 for Gold and 1:100 for Silver, with Platinum and Palladium having access to 1:50. These options provide a balance between significant exposure and risk management.

Energy Products:

Energy commodities such as WTI and Brent oil are available with a leverage of 1:100. This allows traders to capitalize on the frequent price movements driven by geopolitical and economic factors.

Indices:

For those trading major stock market indices like the US500, DE40, or AUS200, XS offers a leverage of 1:100. This level enables traders to leverage their positions in broader market movements without a hefty capital requirement.

Shares and Commodities:

Leverage on shares and soft commodities like corn, cocoa, and cotton is set at 1:50. This ratio is particularly suited to markets that can exhibit higher volatility, giving traders substantial exposure with controlled risk.

Cryptocurrencies:

Given the volatile nature of cryptocurrencies, XS provides a more conservative leverage ratio of 1:20 for trading instruments like Bitcoin, Ethereum, and other popular digital currencies. This reduced leverage helps manage the risks associated with the high price swings typical in crypto markets.

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Benefits of Utilizing Leverage

• Capital Efficiency: Leverage allows traders to make a relatively small capital investment to gain a significantly larger exposure to the markets. This can amplify profits if the market moves favorably.
• Diversification: With access to higher capital through leverage, traders can diversify their investment across various instruments, spreading risk.
• Enhanced Profit Potential: By increasing the value of potential movements, leverage can enhance the profitability of trades in small market movements.

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Risks and Considerations

• Understand Margin Requirements: Traders must maintain the minimum margin requirement for their leveraged positions at all times to avoid a margin call or closure of their positions.
• Implement Risk Management Strategies: This includes setting stop-loss orders to limit potential losses and closely monitoring market movements.
• Be Aware of Market Volatility: Sudden market changes can significantly impact leveraged positions, potentially leading to substantial losses.

XS’s leverage options provide traders with the flexibility to pursue aggressive growth strategies by amplifying their trading power. However, it’s essential for traders to use leverage wisely and understand the accompanying risks. XS supports its clients with robust risk management tools and resources to help them harness the potential of leverage effectively and safely.