Understanding Leverage

Leverage is the ability to use something small to control something big. Specific to forex trading, it means you can have a small amount of capital in your account controlling a larger amount in the market.

Stock traders will call this trading on margin. In Forex trading, there is no interest charged on the margin used, and it doesn’t matter what kind of trader you are or what kind of credit you have. If you have an account and the broker offers margin, you can trade on it.

The obvious advantage of using leverage is that you can make a considerable amount of money with only a limited amount of capital. The problem is that you can also lose a considerable amount of money trading with leverage. It all depends on how wisely you use it and how conservative your risk management is.

 

Risk Management Settings

As a responsible broker B.I.C. Markets has implemented the below account restrictions to help you better manage risk when trading on leverage.

Available LeverageMaximum Account Balance
400:1$10,000
300:1$50,000
200:1$100,000
100:1No Limit

Margin & Leverage

LeverageAmount TradedLots TradedRequired Margin
100:1$100,0001.00$1,000
200:1$100,0001.00$500
300:1$100,0001.00$333
400:1$100,0001.00$250