Take Advantage of Exness:
Exness offers leverage to its traders so that traders have more capital to trade with than they used to deposit. There is unlimited leverage available in excess. Let's dig deeper and better understand leverage and how you can calculate it.
What is leverage?
You must be wondering what leverage means. It is like a loan that a broker offers to a trader. Leverage allows people to make big transactions, even if they don't have a small deposit. As a result, this increases the purchasing power of merchants. It is represented in the form of a proportion. This relationship occurs between the following:
- Trader's fund
- Borrowed funds
For example, this ratio could be 1:200, 1:2000 or 1: Unlimited.
The maximum amount of leverage that can be used depends on your trading terminal. This is when you trade most currency pairs.
In Meta Trader 4, the leverage is 1: Unlimited. And on the trading platform, Meta Trader 5, the leverage is 1:2000. It is available for any type of account:
- Standard account
- Standard Plus Account
- Standard Penny Account
- Pro Account
- Zero Account
- Gross Spread Account
The amount of leverage depends on several factors. It is based on the equity of the account.
Unlimited leverage activated (Exness Unlimited Leverage):
This allows you to trade with a minimum margin. This way you can try different strategies and open more important positions. The correct ratio for this type of leverage is 1:2 100000000. It is available for several accounts when trading on MetaTrader MT4:
- Exness Standard Account
- Standard Penny Counter
- Standard Plus Account
- Professional account
- Gross Spread Account
- Zero account
Unlimited leverage carries increased risk and can lead to significant capital losses. That is why it is preferred by experienced traders. You must meet certain conditions before using the unlimited leverage. The requirements or prerequisites are as follows:
- The share capital must be less than $1000.
- You need to close five lots (500 cents) and ten positions on all live accounts.
- If you want to select 'Unlimited Leverage', it is available in the 'Personal Area'. But it is only available in the 'Personal Area' after completing all the requirements.
How to choose the type of leverage
When creating a new trading account, you have the option to choose the maximum level of leverage. In addition, users can customize the type of leverage for existing accounts.
To do this, click on the Settings button (represented by three dots) next to the trade button for the desired account. A menu will appear where you need to select "Change maximum leverage."
In the pop-up window, you can select the desired leverage limit and confirm your choice by clicking on the "set maximum leverage" button. Please note that the "1: Unlimited" mode (exness unlimited leverage) is only available under certain conditions, as mentioned above.
Leverage limits on Exness accounts:
Once you have selected the "Unlimited Leverage" option, the maximum leverage available on your account will change. The leverage effect will increase to a level when the capital in your account exceeds a fixed amount. You can understand in the table below the capital and leverage requirements of the account.
|$0-999 (Hanya untuk MT4)
|1: Tak terbatas
Dynamic margin requirements in Exness:
These requirements change as leverage changes. These requirements are dynamic for most trading platforms. The requirements for leverage and margin are inversely proportional. This means that if one thing is more important, the other will be less important.
Under the conditions detailed below, the leverage changes automatically.
- The leverage automatically changes half an hour before the daily market break. (For gold trading)
- This changes before weekends and holidays
- If the capital of your account changes
- When important economic news appears
- When a company's financial statements arrive, the leverage automatically changes half an hour before the stock market closes and 20 minutes before it reopens.
Fixed margin requirements on Exness:
For some instruments, this requirement is established. They do not change regardless of changes in leverage. These include:
- And groups of indexed instruments
How to calculate the margin on the Exness platform:
It is important to note that the margins are calculated differently depending on the trading platforms. For example, the calculation of the margin of the Exness platform depends on the leverage effect. Therefore, it is based on the leverage you use. But, as we have seen before, some platforms may have fixed margin requirements.
The margin requirements depend on the Leverage:
Margin = Lot x contract size / Leverage size
Let me explain this to you through this example. We have four lots of EURUSD with a leverage of 1:1000.
Many = 4
Contract size = 100000 EUR
Leverage size = 1000
Margin = 2 x 100,000 / 1000 = 200 EUROS
You should always calculate the margin in the base currency.
How leverage affects your trades:
Any sudden stop or fall can be alarming for anyone in forex trading. However, we have risk management techniques to solve these problems. These techniques allow you to test different trading conditions. This way you can be better prepared. So let's see how leverage can affect your transactions and how you can handle such situations.
The Stop-loss can close your position automatically. This happens when your margin level is extended to a certain level. This level is 0% in most cases. The mechanism for calling this method is the same. But it does not close the position automatically. Notifies or simply informs you about the position. In this case, it will happen faster when the margin level is 60%.