Up to 1:2000 Dynamic Leverage with XS explained
XS’s Dynamic leverage enables you to trade with a smaller amount of capital, automatically adjusting based on the size of your trade volume.
XS
XS is a multi-asset broker that has been operating with excellence in the sector for decades. It offers traders a flexible, secure, efficient, and opportunity-rich trading environment. This environment allows traders of any level to trade at their best using technologically advanced tools and features that meet any trading need.
The broker strongly believes in trading based on knowledge and experience. For this reason, it offers traders an excellent learning and updating section, where both experienced and beginner traders can refine their style and expand their knowledge.
XS provides traders the opportunity to trade on a wide range of instruments (including stocks, indices, metals, futures, commodities, forex, energies, and cryptocurrencies) with advantageous conditions and minimal costs. Additionally, as an internationally regulated broker, XS ensures very high standards of security and transparency, allowing traders to trade without worrying about unpleasant surprises.
- Regulated.
- In order to comply with the rules set by regulatory bodies, the broker offers traders a regularly checked environment. High security levels allow traders to operate in the markets with peace of mind. At any time, clients can easily and quickly know any cost, commission, price, or other parameters.
- Security of funds.
- Traders’ funds will be deposited in segregated accounts at top-tier banks. The broker cannot access the trader’s funds and cannot use them for other purposes. In addition, the broker protects the sensitive information of clients, making it inaccessible thanks to high levels of protection.
- Wide range of instruments.
- XS offers clients the opportunity to select the most suitable instrument for their needs. Each trader can choose from stocks, indices, metals, futures, commodities, forex, energies, and cryptocurrencies.
- Advanced technologies at the service of clients.
- State-of-the-art tools and functions accessible by both expert and novice traders will allow the creation of excellent investment strategies. A flexible and easily accessible environment, capable of satisfying any need.
- Simple registration.
- Opening a new account with the broker is an easy and fast process. The interested trader will be able to access the registration pages, provide the necessary information, choose the type of account, and start trading in a short time. It is important to remember that to activate the account, the trader will have to undergo verification of their identity.
- Efficient payment methods
- With access to a wide list of payment methods available, traders will have the option to choose the most suitable for their needs and make deposits and withdrawals quickly and securely.
- Flexible trading conditions
- Among the most convenient trading conditions on the market. Carefully structured to allow traders of any level to find the right solution to achieve their goals, with minimal spreads, zero commissions, dynamic leverage, and much more.
- Constant support.
- A support team made up of industry professionals always ready to support clients at any time. Useful information, advice, and support to solve any problems.
- Dynamic leverage.
- A revolutionary tool that allows traders to negotiate volumes higher than the actual capital invested, dynamic leverage offers the possibility to maximize the benefits from operations performed and at the same time, reduce the risks of loss. In fact, this type of leverage adapts to the traded volume, decreasing or increasing automatically to limit risks and reduce losses.
Dynamic Leverage
A tool considered indispensable by most traders for negotiating on global markets, financial leverage has evolved over the years, allowing traders to benefit from numerous solutions. Among these, the most innovative and advantageous is undoubtedly dynamic leverage.
Financial leverage is effectively a loan that the broker offers to its clients. Using this tool, the client has the opportunity to open positions significantly higher than the actual capital invested. For example, with leverage of 1:30, the trader can open a position of $30,000 by investing only $1,000.
Two possible scenarios can occur:
- The operation is positive, and the trader reaps significant profits.
- The operation is negative, and the client will be required to pay the consequences (having to provide for the losses of the lost amount).
In the first case, the trader will reap profits higher than the capital actually invested (excluding a percentage due to the broker). But in the second case, unfortunately, the client will have to provide for the losses, which often equate to substantial amounts.
Thus, using leverage, the client can obtain potentially higher profits, since they will have the opportunity to control positions of a higher value relative to the actual capital invested. Consequently, even small percentage fluctuations in the value of the instrument could generate substantial gains.
But despite the fact that leverage may allow the trader to have a greater chance of profit, it is necessary to remember that it also involves a high risk of losses. Indeed, just as profits, losses can also increase proportionally based on the leverage used.
Unlike ordinary (static) leverage, dynamic leverage automatically adjusts to trading positions. In practice, as the volume of investments increases, the maximum leverage offered decreases accordingly. An excellent solution to minimize risks and consequent losses.
XX offers clients the opportunity to trade using dynamic leverage up to 1:2000. Depending on the market and the selected instrument, the maximum usable leverage will be different. The calculation that will allow adjusting the leverage based on the traded volume will be carried out on each individual instrument. Consequently, if the trader had multiple open positions, the leverage would be calculated separately for each investment made.
Instruments | Maximum leverage |
---|---|
Major FX | 1:2000 |
Gold | 1:2000 |
Minor FX | 1:500 |
Crude Oil | 1:500 |
Main indices | 1:500 |
BTC and ETH | 1:500 |
Exotic FX | 1:200 |
Silver | 1:200 |
Minor indices | 1:100 |
Platinum and palladium | 1:100 |
Next, a detailed description of the margin requirements necessary to negotiate with dynamic leverage with each available asset class.
Invest with dynamic leverage XS
Margin Requirements
As already described, as the volume of investments varies, the dynamic leverage will be automatically adjusted. The maximum available leverage varies according to the asset class chosen for trading. For each investment made, the trader will have to consider the necessary margin requirements.
Margin in trading is the amount of funds required to open a position using leverage. In practice, it represents the difference between the total volume of a position and the capital lent by the broker. The margin must be understood as a sort of guarantee to protect the client, which will help to reduce risks and cover any losses. Additionally, the margin requirements do not allow the trader to lose more than what is deposited on their XS account.
Major FX
Lots | Margin | Maximum leverage |
---|---|---|
0-2 | 0.05% | 1:2000 |
2-10 | 0.1% | 1:1000 |
10-50 | 0.2% | 1:500 |
50-100 | 0.5% | 1:200 |
100-200 | 1% | 1:100 |
200+ | 4% | 1:25 |
Example:
Considering a USD account using 1:2000 leverage and trading 2 lots of USDJPY (buy/sell), the required margin will be as follows:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
2 | 1:2000 | 0.05% | 2 (lots) x 100,000 / 2000 (applied leverage) | $100.00 USD |
Total required margin $100.00 USD. Note that the account currency is the same as the symbol currency, so the conversion rate is 1.
Total required margin in symbol currency $100.00 USD / Conversion rate (USD/USD) 1 = $100.00 USD
Invest with dynamic leverage XS
Minor FX
Lots | Margin | Maximum leverage |
---|---|---|
0-10 | 0.2% | 1:500 |
10-50 | 0.5% | 1:200 |
50-100 | 1% | 1:100 |
100-200 | 2% | 1:50 |
200+ | 4% | 1:25 |
Example
Assuming an account with EUR currency using a max leverage of 1:2000 and trading 10 lots of EURJPY:
The required margin will be as follows:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
10 | 1:500 | 0.2% | 10 lots x 100,000 / 500 (applied leverage) | €2,000.00 |
Account currency and symbol are the same, so the conversion rate will be 1.
Total required margin in symbol currency €2,000.00 / Conversion rate (EUR/EUR) 1 = €2,000.00
Invest with dynamic leverage XS
Exotic FX
Lots | Margin | Maximum leverage |
---|---|---|
0-20 | 0.5% | 1:200 |
20-50 | 1% | 1:100 |
50-100 | 2% | 1:50 |
100+ | 4% | 1:25 |
For example:
Investing on a USD account with 1:2000 leverage and 20 lots of USDZAR (Buy or Sell):
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
20 | 1:200 | 0.5% | 20 lots x 100,000 / 200 (applied leverage) | $10,000.00 USD |
The account currency is equal to the symbol currency, and thus the conversion rate will be 1.
Total required margin in symbol currency $10,000.00 USD / Conversion rate (USD/USD) = Total required margin in account currency $10,000.00 USD
Invest with dynamic leverage XS
Gold
Lots | Margin | Maximum leverage |
---|---|---|
0-2 | 0.05% | 1:2000 |
2-5 | 0.1% | 1:1000 |
5-10 | 0.2% | 1:500 |
10-20 | 0.5% | 1:200 |
20-40 | 1% | 1:100 |
40-80 | 2% | 1:50 |
80+ | 4% | 1:25 |
Example:
A trader with a USD account trading 2 lots XAUUSD.
Assuming the traded instrument value is $1,950.00 USD, the required margin will be as follows:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
2 | 1:2000 | 0.05% | 2 lots x 100,000 x $1,950.00 / 2000 (applied leverage) | $195.00 USD |
Total required margin in symbol currency = $195.00 USD As in the previous examples, the symbol currency is the same as the account, so:
Total required margin in symbol currency $195.00 USD / Conversion rate (USD/USD) 1 = Total required margin in account currency $195.00 USD
Invest with dynamic leverage XS
Silver
Lots | Margin | Maximum leverage |
---|---|---|
0-5 | 0.5% | 1:200 |
5-20 | 1% | 1:100 |
20-40 | 4% | 1:25 |
40+ | 10% | 1:10 |
Example:
Consider a USD account using max leverage of 1:2000 to trade 5 lots XAGUSD.
XAGUSD value: $20.00 USD
The necessary margin will be as follows:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
5 | 1:200 | 0.5% | 5 lots x 5,000 x $20.00 / 200 (applied leverage) | $2,500.00 USD |
Total required margin in symbol currency = $2,500.00 USD As previously described, the symbol and account currency are the same. Consequently:
Total required margin in symbol currency $2,500.00 USD / Conversion rate (USD/USD) 1 = Total required margin in account currency $2,500.00 USD
Invest with dynamic leverage XS
Platinum and Palladium
Lots | Margin | Maximum leverage |
---|---|---|
0-2 | 1% | 1:100 |
2-10 | 2% | 1:50 |
10-20 | 4% | 1:25 |
20+ | 10% | 1:10 |
For example:
Trading on a USD account with 1:2000 leverage. 2 lots XPTUSD traded.
Assuming XPTUSD is valued at $900.00 USD, the required margin will be as follows:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
2 | 1:100 | 1% | 2 lots x 100 x $900.00 / 100 (applied leverage) | $1,800.00 USD |
Total required margin in symbol currency = $1,800.00 USD Symbol and account currencies are the same. Therefore:
Total required margin in symbol currency $1,800.00 USD / Conversion rate (USD/USD) 1 = Total required margin in account currency $1,800.00 USD
Invest with dynamic leverage XS
Main Indices
Lots | Margin | Maximum leverage |
---|---|---|
0-5 | 0.2% | 1:500 |
5-25 | 0.5% | 1:200 |
25-50 | 1% | 1:100 |
50-100 | 2% | 1:50 |
100-200 | 4% | 1:25 |
200+ | 10% | 1:10 |
Example:
A trader with a USD currency account using a max leverage of 1:2000, decides to trade 5 lots of US30.
The required margin is as follows:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
5 | 1:500 | 0.2% | 5 lots x 1 x $35,000.00 / 500 (applied leverage) | $350.00 USD |
Total required margin in currency = $350.00 USD Both the account and symbol currency are the same. Therefore:
Total required margin in symbol currency $350.00 USD / Conversion rate (USD/USD) 1 = Total required margin in account currency $350.00 USD
Invest with dynamic leverage XS
Minor Indices
Lots | Margin | Maximum leverage |
---|---|---|
0-20 | 1% | 1:100 |
20-50 | 2% | 1:50 |
50-100 | 4% | 1:25 |
100-200 | 10% | 1:10 |
200+ | 20% | 1:5 |
Example:
Let’s assume that a trader with an EUR currency account using max leverage of 1:2000 chooses to trade 20 lots of ES35.
The value of the instrument is: ES35 = €9,500.00
The required margin is next:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
20 | 1:100 | 1% | 20 lots x 1 x €9,500.00 / 100 (applied leverage) | €1,900.00 |
Account currency = symbol currency. Conversion rate equal to 1.
Total required margin in symbol currency €1,900.00 / Conversion rate (EUR/EUR) 1 = Total required margin in account currency €1,900.00
Invest with dynamic leverage XS
Energy (UKOIL and USOIL)
Lots | Margin | Maximum leverage |
---|---|---|
0-2 | 0.2% | 1:500 |
2-10 | 0.5% | 1:200 |
10-50 | 1% | 1:100 |
50-100 | 4% | 1:25 |
100+ | 10% | 1:10 |
Example:
Suppose a trader with a USD currency account and max leverage 1:2000 opts for trading 2 lots of UKOIL.
Considering UKOIL: $75.00 USD, the required margin will be:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
2 | 1:500 | 0.2% | 2 lots x 1,000.00 x $75.00 / 500 (applied leverage) | $300.00 USD |
Account currency = symbol currency, thus the Conversion rate will be 1.
Total required margin in symbol currency $300.00 USD / Conversion rate (USD/USD) 1 = Total required margin in account currency $300.00 USD
Invest with dynamic leverage XS
Cryptocurrencies (BTC and ETH)
Lots | Margin | Maximum leverage |
---|---|---|
0-2 | 0.2% | 1:500 |
2-10 | 0.5% | 1:200 |
10-20 | 2% | 1:50 |
20-30 | 4% | 1:25 |
30-40 | 10% | 1:10 |
40+ | 20% | 1:5 |
Example:
A trader decides to trade 2 lots of BTCUSD on their USD currency account with max leverage 1:2000.
Assuming BTCUSD is valued at $40,000.00 USD, the necessary margin will be as follows:
Lots | Applicable leverage | Applicable margin requirement | Margin calculations | Margin amount in currency |
---|---|---|---|---|
2 | 1:500 | 0.2% | 2 lots x 1 x $40,000.00 / 500 (applied leverage) | $160.00 USD |
Account currency = symbol currency. Conversion rate equal to 1.
Total required margin in symbol currency $160.00 USD / Conversion rate (USD/USD) 1 = Total required margin in account currency $160.00 USD
Invest with dynamic leverage XS
Contract Specifications
It is important to specify that the dynamic leverage offered is not available on some types of accounts and instruments to trade on. Through accurate risk management measures, the broker aims to protect operations from excessive volatility during certain periods of time and significant events that could significantly impact the markets. During these periods, commonly called HMR (higher margin requirements), higher margin amounts will be required.
Specifically, HMR periods may occur within a time span that ranges from: 5 minutes before major press releases to 10 minutes after – 2 hours before market close on Friday and for 1 hour after the market opens on Monday. The maximum leverage usable for new orders made during HMR periods will be automatically set at 1:200.
It is important to specify that these restrictions will be applied only to positions opened during these periods. The margin requirements set on existing positions will not be changed. In the event that a trader attempts to close a position during HMR periods, they may encounter problems. The position will not be closed if the free margin is insufficient to cover the higher margin requirements. In particular, the highest margin requirements present in the second half of an order, covered just before closing.
Instruments | HMR Leverage |
---|---|
Major FX | 1:200 |
Gold | 1:200 |
Minor FX | 1:100 |
Crude Oil | 1:100 |
Main indices | 1:50 |
BTC and ETH | 1:50 |
Exotic FX | 1:500 |
Silver | 1:10 |
Minor indices | 1:10 |
Platinum and palladium | 1:10 |
Available Accounts
As previously mentioned, dynamic leverage is not available on all types of accounts offered by the broker. Nevertheless, the trader will still have the opportunity to select the most suitable option for their needs in order to trade at their best. And if a trader with an account without dynamic leverage is interested in using the tool, they can always opt to open an additional account that supports its use.
The broker offers traders 6 types of accounts, divided into two categories: Preferred Accounts and Professional Accounts. Both categories offer 3 different types of accounts.
- Preferred Accounts: Account types usually selected by beginners and experts who prefer a classic approach to trading, with optimal conditions and limited risk. Cent, Standard, and Micro.
- Professional Accounts: Accounts that offer tools and trading conditions for high-performance trading, suitable mainly for professional trading.
In addition to the types of accounts just listed, the broker offers other types of accounts exclusively dedicated to Partners.
Preferred Accounts
- Cent Account
- A type of account created mainly for traders intending to invest small amounts of capital. The account balance is expressed in cents (for example, depositing $100 will result in a balance of 10,000 cents). Trading conditions suitable for both beginners and experts will allow the former to trade without committing excessive capital and the latter to test the offered environment before opting for more demanding accounts.
- Standard Account.
- An account that offers traders of any level of experience, simple and easy-to-use trading. Functions, tools, and trading conditions for a classic approach to the markets, will allow both expert traders and beginners to trade at their best. Competitive spreads, high-speed market execution, and no minimum deposit for activation.
- Micro Account
- A type of account created mainly for low-risk traders who do not intend to trade large amounts and consequently, lose excessively. The Micro account offers a low-cost and low-risk environment with the possibility to trade in micro lots, without paying commissions and with spreads reduced to a minimum.
It is important to note that none of the accounts just described have a minimum deposit for activation. Each trader can decide calmly, when and how much to deposit to trade on the markets. A feature that undoubtedly denotes the broker’s goal: to establish a relationship with the client based on mutual respect and trust.
Professional Accounts
- Elite Account.
- A typical account created for purely professional trading, the Elite account offers everything necessary to fully express one’s potential. Raw spreads, low commissions, high execution speed, and a wide range of instruments will allow expert traders to create accurate strategies to maximize profit from any operation.
- Pro Account.
- An account created exclusively for expert clients looking for features and conditions that guarantee high-performance trading. High liquidity, spreads reduced to a minimum, and high execution speed.
- VIP Account
- An account suitable for traders who need particular conditions and tools for the development of their strategies, the VIP account has been created exclusively for high-volume investors who create highly accurate risk management strategies. In addition to the tools and functions available on other accounts for professional trading, the VIP account includes exclusive premium trading conditions and deeper liquidity. Moreover, by contacting their account manager, the trader will have the opportunity to further customize features and trading conditions to trade at their best.
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Account Comparison
The broker allows “undecided” clients to opt for opening a demo version of the selected account, in order to test the environment without having to risk funds. This service is not available for all types of accounts offered.
Following, a detailed comparative table, containing all the characteristics of each individual account offered by the broker:
Characteristics | Cent Account | Standard Account | Micro Account | Elite Account | Pro Account | VIP Account |
---|---|---|---|---|---|---|
Minimum deposit | None | None | None | $500 USD | $500 USD | $100,000 USD |
Maximum number of accounts | 10 | 10 | 10 | 10 | 10 | 10 |
Demo account | Not available | Available | Not available | Available | Available | Not available |
Base currency | USC | USD – EUR -JPY | USD | USD – EUR -JPY | USD – EUR -JPY | USD – EUR -JPY |
Available instruments | Currencies and Metals | Currencies, Metals, Cryptocurrencies, Energies, Indices, Futures, Stocks | Currencies, Metals, Indices, energy | Currencies, Metals, Cryptocurrencies, Energies, Indices, Futures, Stocks | Currencies, Metals, Cryptocurrencies, Energies, Indices, Futures, Stocks | Currencies, Metals, Cryptocurrencies, Energies, Indices, Futures, Commodities |
Average spread (EURUSD) | Variable from 1.1 pips | Variable from 1.1 pips | Variable from 1.1 pips | Variable from 0.1 pip | Variable from 0.7 pip | Variable from 0.1 pip |
Trading commissions | Zero | Zero | Zero | From $3 per lot | Zero | Variable depending on the selected instrument |
Stop out level | Zero | Zero | Zero | Zero | Zero | Zero |
Swap-free option (Islamic account) | Available on request | Available on request | Available on request | Available on request | Available on request | Available on request |
Lot size | Standard cent (100,000) USC | Standard (100,000) | Micro 1,000 USD | Standard (100,000) | Standard (100,000) | Standard (100,000) |
Minimum trading volume | 0.01 Lot | 0.01 Lot | 0.01 Lot | 0.01 Lot | 0.01 Lot | 0.01 Lot |
Maximum volume per order (daytime) | 500 Lots | 100 Lots | 500 Lots | 100 Lots | 100 Lots | 100 Lots |
Maximum volume per order (nighttime) | 500 Lots | 50 Lots | 500 Lots | 50 Lots | 50 Lots | 50 Lots |
Total maximum volume of pending orders | 500 Lots | X | 500 Lots | X | X | X |
Total maximum volume of open orders | 500 Lots | X | 500 Lots | X | X | X |
Total maximum volume of pending and open orders | 1000 Lots | X | 1000 Lots | X | X | X |
Maximum number of pending orders | 500 orders | 600 orders | 500 orders | 600 orders | 600 orders | X |
Maximum number of open orders | 500 orders | 600 orders | 500 orders | 600 orders | 600 orders | X |
Maximum number of pending and open orders | 1000 Lots | 600 Lots | 1000 Lots | 600 orders | 600 orders | X |
Dynamic leverage | Not available | Available | Not available | Available | Available | Not available |
Maximum leverage | 1:1000 | 1:2000 | 1:1000 | 1:2000 | 1:2000 | 1:500 |
Margin call level | 60% | 40% | 60% | 40% | 40% | 40% |
Stop out level | 10% | 20% | 10% | 20% | 20% | 20% |
Covered margin | Zero | Zero | Zero | Zero | Zero | Zero |
How to Open an XS Account
Opening a new XS account is simple and quick. The interested trader can register and choose the most suitable account easily, following a guided step-by-step procedure. To register, the trader will need to provide the requested information and verify their identity. Additionally, as already mentioned, if the trader wishes to test the service offered, they can opt for opening a demo version of the account (where permitted) or an account that offers limited loss risks.
To register and start investing with XS, just follow these very simple steps:
- First step.
- To start, the interested trader will need to visit the official website and click on the “register” icon. On the new page, fill out the form by entering: title, name, surname, country of residence, phone number, a valid email address, a password for the new account. Read the terms and conditions of use very carefully and accept them. Click on “Continue”. The broker will send a confirmation code to the email address entered during registration. Open your email, enter the code in the appropriate space, and click on “Continue”.
- Second step.
- In this step, the trader can continue the registration by entering the requested information in the appropriate spaces. In addition to entering gender, date of birth, nationality, and country of residence, the trader will have to answer a series of questions, useful for the broker to assess the level of experience, objectives, financial status, etc. A procedure that will allow the broker to offer efficient and personalized service to the client:
- In the first questionnaire, there will be questions concerning: the level of experience in trading, understanding of the nature and risks associated with trading, knowledge of derivative products, experience and/or qualifications relevant to financial services. Once the questionnaire is completed, click on “Continue”.
- In the second form, the trader will need to enter information on: occupation, source of funding for the account, approximate annual income, approximate net worth, approximate liquid assets.
- Last step.
- In this step, the trader will have to choose the most suitable account for their needs, set its parameters, and carry out a verification of the data provided. To proceed with the verification, the client will need to prove their identity and country of residence. To do this, they will need to send a clear front and back photo of an identification document (passport, driver’s license, ID card) and a recent utility bill (electricity, gas, internet) containing the full address. If suitable, the account will be active, and the client can make a first deposit to start trading.