What is the leverage and why is it necessary?

Leverage – the ratio between the volume of positions and a guarantee for its opening.

The higher the leverage, the less amount of money is needed for the transaction.

The leverage allows you to trade much more money compared to the amount that you have on the account.

Thus, the leverage of 1:100 means that to open a trading order customer must have 100 times less sum than the value of the contract.

Many Forex brokers provide leverage from 1:1 to 1:500 depending on the type and size of the account balance.

It is important to note that the leverage does not affect the point value, and regardless of the amount of leverage, the maximum amount of your loss cannot exceed the amount credited to the trading account.

Example: to buy 1,000 euros (0.01 lot), you need 1408.4 U.S. dollars (at an exchange rate of EUR/USD equal to 1.4084), but the leverage allows you to trade with a smaller amount.

Thus, with a 1:100 leverage margin to open positions will be $ 14.08 (up to 100 times less), and with 1:500 leverage you will need $ 2.82 (up to 500 times less). The remaining funds for the transaction will be provided by the broker and its partners.

XM or Exness for High Leverage Trading?

Exness and XM, both known as popular Forex brokers in the world, are also famous for their high-leverage trading conditions.

With Exness, you can trade with an unlimited amount of leverage, meaning that you can practically open any size of position with the smallest amount of equity in your account.

On the other hand, XM offers up to 1:1000 leverage.

Apparently, Exness’s unlimited condition seems much better than XM’s 1:1000 leverage, but is it really so?

In this article, we will look into the details of both brokers’ leverage conditions and compare them.

You don’t have an account with XM yet? Then go to the registration page of XM and sign up. There are various bonuses that you can claim today.

You don’t have an account with Exness yet? Sign up on EXNESS for free and see how dynamic their unlimited leverage is.

Condition of XM’s High Leverage

The available maximum leverage of Both XM and Exness are limited when you have a higher account balance.

If you have a higher balance than a certain level, the maximum leverage you can utilize in the account will also be decreased.

See the table below to find out how your leverage can be limited on XM’s accounts.

XM’s maximum leverage 1:1000 leverage is available only for traders who deposit less than $20,000 in their accounts.

This leverage restriction is not account basis but client profile basis, meaning that if the sum of the funds in all accounts reaches $20,000 then the leverage for all accounts will be limited down to 1:200.

Go to XM’s Official Website

Condition of Exness’s High Leverage

Exness’s unlimited leverage is available for trading accounts with up to 999.99 USD.

If your account has more than 1000.00 USD, then the leverage will be restricted according to the following rule.

With Exness, no matter how high your account balance is, the leverage won’t be limited to less than 1:500.

Also, the above leverage rule applies per account basis which will allow you to manage your account activities more efficiently through the client portal.

Exness’s leverage condition gives traders a great advantage when many other brokers offer only up to 1:500 leverage with limitations apply when an account balance is high.

Go to EXNESS’s Official Website

Exness wins over XM on the Leverage Condition

when comparing only the leverage condition of XM and Exness, we can clearly see how Exness’s leverage condition is much better than XM’s.

If you are looking for a broker with a high leverage that is available even for accounts with a large amount of equity, then Exness is definitely a recommendation.

Go to Exness’s Official Website

The result doesn’t mean that Exness is superior to XM in every aspect.

Both Exness and XM are 2 of the most popular Forex brokers in the world, and we say both brokers’ services are worth the experience.