Question: Forex leverage restrictions for high account balance
Traders Trust offers the highest leverage which is 1:500 for tradings of Forex Currency Pairs though, the maximum leverage may not be available for some other financial instruments due to the reason of risk management.
Maximum Leverage for Forex
You can use the maximum leverage of 1:500 for all Forex currency pairs in Traders Trust MT4.
There is no restrictions in terms of the leverage on Forex with Traders Trust.
Only condition would be the account balance in your MT4.
As Traders Trust will need to manage the least risks for its traders, the broker will restrict the leverage if the account balance is too high to have the leverage.
Please refer to the below table.
The Account Balance | Available Leverage |
---|---|
$100 – 5000 | Up to 1:500 |
$5001 – 50,000 | Up to 1:200 |
More than $50000 | Up to 1:100 |
Maximum Leverage for CFDs
Besides the Forex currency pairs, the broker offers Precious Metals, Index CFDs and Commodities through its MT4.
Each of symbol has got different leverage condition.
So you may want to be careful before placing orders for CFDs as the broker might require more margins than usual.
Please refer to the below table.
Precious Metals | up to 1:500 leverage |
---|---|
Index CFDs | up to 1:50 leverage (nly 1:20 for EU Stocks 50 Index) |
Commodities(Oils) | up to 1:20 leverage |
High Leverage = High Risks
Leverage 1:500 is at around the leverage among other online brokers.
But it is still a high leverage which you are not able to experience with other financial markets.
Please remember that Forex & CFD tradings involve high risks and you could even lose all your investment funds by trading.
Higher the leverage setting is, higher the the risk is.
If you have set the account leverage to 1:500, then your profits and losses will be leveraged to 500 times more.
If you are not familiar with the leverage tradings, you are recommended to open up a MT4 Demo account see how the trading works.
Negative Balance Protection
Fortunately, Traders Trust offers NBP(Negative Balance Protection) to all its clients. This NBP triggers, when your account balance goes negative(below zero).
The broker has set the Stop out % to 50%, where all your open positions will be automatically closed in order to avoid further losses.
This action is also called “Liquidation” and it occurs when the margin level is at 50%.
When this Stop out triggers, sometimes the system cannot keep the losses within the available account balance, then there will be negative balance in the trading account as the exceeded losses.
Traders Trust will cover this exceeded losses and fix the account balance to Zero in this case.
So trading with Traders Trust means, you can leverage your profit to 500 times more and limit the losses to the deposited amount in your account.