IFC Markets provides a comprehensive array of over 650 financial instruments, which include CFDs and Forex pairs, across multiple categories.

This extensive selection is supported by favorable trading conditions that are critical when traders select a broker.

A crucial aspect of these conditions is the provision of leverage.

Leverage, a significant tool in trading, enhances trading power by enabling a relatively small amount of capital to control a much larger financial position.

The Essence of Leverage

Leverage in trading allows investors to increase their exposure to the market without committing large amounts of capital.

At IFC Markets, leverage ratios vary depending on the account type, the financial instrument being traded, and the platform used.

The maximum leverage provided can reach up to 1:400 for certain account types.

This article focuses into the nuances of how leverage works at IFC Markets, the different leverage ratios available, and the associated risks and benefits.

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Forex and CFD Trading at IFC Markets

Trading with IFC Markets offers access to a diverse range of instruments:

• Forex: The Forex market operates with currency pairs, which signify the value of one currency relative to another. At IFC Markets, traders can utilize leverage to engage in these currency trades with a smaller initial capital outlay.
• CFDs: Including precious metals like gold, world indices, stock CFDs, and cryptocurrencies, CFD trading at IFC Markets allows for trading on the price movements of these assets without owning the underlying instruments. Here too, leverage plays a pivotal role in magnifying potential returns from relatively small price movements.

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Leverage Details at IFC Markets

Beginner and Micro Accounts:

Leverage ranges from 1:1 up to 1:400.

These accounts cater to new traders and those looking to trade with smaller volumes.

Standard and PAMM Accounts:

For deposits less than $50,000, leverage can be extended to 1:200.

Deposits between $50,000 and $100,000 can utilize leverage of 1:100.

For deposits exceeding $100,000, the leverage available is reduced to 1:50, reflecting a more conservative approach to risk management as the stakes increase.

Special Conditions

• Leverage for cryptocurrency trading is capped at 1:10, acknowledging the volatile nature of these digital assets.
• Stock CFDs generally have lower leverage due to their inherent market volatility and liquidity issues compared to Forex.

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Risk Management with Leverage

The use of leverage is double-edged; it can amplify profits as well as losses.

IFC Markets emphasizes robust risk management practices:

• Margin Requirements: These are set to ensure that traders do not exceed levels of trading exposure that are considered safe. Margin levels adjust according to the leverage and the volatility of the traded asset.
• Stop-Out Levels: To prevent account balances from going negative, IFC Markets implements stop-out levels, which automatically close positions when account equity falls below the required margin level.

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Leveraged Trading Strategies

• Scalping: Traders can make numerous trades for small price advantages.
• Day Trading: Leverage allows traders to capitalize on small price movements within a single trading day.
• Swing Trading: Positions are held for several days, banking on the potential for significant price movements facilitated by leveraged positions.

Leverage at IFC Markets provides traders the ability to significantly enhance potential returns on their investment.

It offers the flexibility to execute various trading strategies with a relatively low capital base.

However, it’s imperative that traders understand the risks associated with leveraged trading and employ prudent risk management techniques.

IFC Markets supports its traders with educational resources and tools to effectively manage leverage and optimize trading performance.