Dynamic Leverage

Dynamic Leverage Tiers per Asset Class

Put your investment power to the test with dynamic leverage that can reach up to 1:1000. Dynamic leverage allows you to trade using a smaller capital and is automatically adjusted according to the volume of your trade. XS uses a dynamic leverage model that automatically adapts to the clients trading positions. As the volume per Instrument of a client increases the maximum leverage offered decreases accordingly, as per the following tables. Our dynamic leverage model is done per trading instrument. As such, if a client has positions open across multiple instruments the leverage will be calculated separately on each symbol. Example: A trader has 100 lots Buy on EURUSD and then starts trading GBPUSD, his/her margin requirement for GBPUSD will not be affected by the existing EURUSD positions.

Forex Margin Requirements

To calculate the required margin, we need to take into consideration the net of the volume. For example, a trader has 200 lots Buy and 100 Lots Sell. The side with the largest exposure is the 200 Buy, and as such, net 100 lots Buy would be the value used in calculating the required margin.

The dynamic leverage model works irrespective if a trader opens multiple positions or a single position, the sum is considered to calculate the margin. So, 10 trades of 10 lots or 1 trade of 100 lots, would require the same margin.

Lots Maximum Leverage
0-20
1000
20-50
500
50-100
200
100-200
100
200+
25

Example:

Client Account Leverage – 1:1000
Consider a USD account with 55 Buy (or Sell) lots USDCAD. In this example, the accounts’ leverage (1:1000) is equal to the symbols’ leverage (1:1000), so the margin required would be as below:

Lots Applicable Margin Requirement Margin Calculations Margin
20
0.10%
20 (Lots) * 100,000 / 1000 (leverage)
2,000 USD
30
0.20%
30 (Lots) * 100,000 / 500 (leverage)
6,000 USD
5
0.50%
5 (Lots) * 100,000 / 200 (leverage)
2,500 USD
55
Margin Requirement Account Currency
10,500 USD

Metals Margin Requirements

The dynamic leverage is done per Trading Instrument, so if a client has positions open across multiple Instruments, the leverage will be calculated separately on each symbol. If a trader has a position in XAGUSD and then starts trading XAUUSD, the margin requirement for XAUUSD will not be affected by the existing XAGUSD positions.

Lots Maximum Leverage
0-5
500
5-20
200
20-40
100
40-80
50
80+
25

Example:

Client Account Leverage – 1:500 Consider a USD account with 35 Buy (or Sell) lots XAUUSD at spot price 1,650. In this example, the accounts’ leverage (1:500) is equal to the symbols’ leverage (1:500), so the margin required would be as below:
Lots Applicable Margin Requirement Margin Calculations Margin
5
0.20%
5 (Lots) * 100 * 1650 / 500 (leverage)
1,650 USD
15
0.50%
15 (Lots) * 100 * 1650 / 200 (leverage)
12,375 USD
15
1.00%
15 (Lots) * 100 * 1650 / 100 (leverage)
24,750 USD
35
Margin Requirement Account Currency
51,150 USD
Note: Margin Calculations: Required Margin = Volume * Contract Size * Open Price / Leverage

Major Indices Margin Requirements

Major indices are: US500, US100, US30, UK100, DE40, AUS200, F40, JP225 and EU50.

Lots Maximum Leverage
0-20
200
20-50
100
50-100
50
100-200
25
200+
10

Example:

Client Account Leverage – 1:500
Consider a USD account with 30 Buy (or Sell) lots US100 at spot price 11430. In this example, the accounts’ leverage (1:500) and the symbols’ max leverage (1:200), so the margin required would be as below:

Lots Applicable Margin Requirement Margin Calculations Margin
20
0.50%
20 (Lots) * 11430 / 200 (leverage)
1143 USD
10
1.00%
10 (Lots) * 11430 / 100 (leverage)
1143 USD
30
Margin Requirement Account Currency
2,286 USD

Minor indices Margin Requirements

Available Minor indices are: ES35 and HK50.

Lots Maximum Leverage
0-20
100
20-50
50
50-100
25
100-200
10
200+
5

Example:

Client Account Leverage – 1:500 Consider a USD account with 45 Buy (or Sell) lots ES35 at spot price 7595. EUR/USD rate at the time of the trade is 1.05. In this example, the accounts’ leverage (1:500) and the symbols’ max leverage (1:100), so the margin required would be as below:
Lots Applicable Margin Requirement Margin Calculations Margin
20
1.00%
20 (Lots) * 7595 / 100 (leverage)
1519 EUR
25
2.00%
25 (Lots) * 7595 / 50 (leverage)
3797.5 EUR
45
Margin Requirement Account Currency (5316.5 EUR * 1.05)
5582.3 USD

Futures Margin Requirements

Lots Maximum Leverage
0-10
200
10-50
100
50-100
25
100+
10

Example:

Client Account Leverage – 1:500
Consider a USD account with 25 Buy (or Sell) lots Wheat futures at price 915. In this example, the accounts’ leverage (1:500) is higher to the symbols’ max leverage (1:200), and the margin required would be as below:

Lots Applicable Margin Requirement Margin Calculations Margin
10
0.50%
10 (Lots) * 100 * 915 / 200 (leverage)
4,575 USD
15
1.00%
15 (Lots) * 100 * 915 / 100 (leverage)
13,725 USD
25
Margin Requirement Account Currency
18,300 USD

Energy Margin Requirements

Lots Maximum Leverage
0-10
200
10-50
100
50-100
25
100+
10

Example:

Client Account Leverage – 1:200
Consider a USD account with 60 Buy (or Sell) lots US Oil at spot price $85. In this example, the accounts’ leverage (1:200) is equal to the symbols’ max leverage (1:200). The margin required would be as below:

Lots Applicable Margin Requirement Margin Calculations Margin
10
0.50%
10 (Lots) * 1000 * 85 / 200 (leverage)
4,250 USD
40
1.00%
40 (Lots) * 1000 * 85 / 100 (leverage)
34,000 USD
10
4.00%
10 (Lots) * 1000 * 85 / 25 (leverage)
34,000 USD
60
Margin Requirement Account Currency
72,250 USD

Shares Margin Requirements

Lots Maximum Leverage
0-500
50
500-1000
20
1000-4000
10
4000+
2

Example:

Client Account Leverage – 1:500
Consider a USD account with 4500 Buy (or Sell) lots Apple shares at price $143. In this example, the accounts’ leverage (1:500) is higher to the symbols’ max leverage (1:50). The margin required would be as below:

Lots Applicable Margin Requirement Margin Calculations Margin
500
2.00%
500 (Lots) * 143 / 50 (leverage)
1,430 USD
500
5.00%
500 (Lots) * 143 / 20 (leverage)
3,575 USD
3000
10.00%
3000 (Lots) * 143 / 10 (leverage)
42,900 USD
500
50.00%
3000 (Lots) * 143 / 2 (leverage)
35,750 USD
4500
Margin Requirement Account Currency
82,225 USD

Cryptocurrency Margin Requirements

Lots Maximum Leverage
0-5
200
5-15
50
15-50
10
50-100
5
100+
1

Example:

Client Account Leverage – 1:500
Consider a USD account with 17 Buy (or Sell) lots ETHUSD at price $1350. In this example, the accounts’ leverage (1:500) is higher to the symbols’ max leverage (1:200). The margin required would be as below:

Lots Applicable Margin Requirement Margin Calculations Margin
5
0.50%
5 (Lots) * 1350 / 200 (leverage)
33.75 USD
10
2.00%
10 (Lots) * 1350 / 50 (leverage)
270 USD
2
10.00%
2 (Lots) * 1350 / 10 (leverage)
270 USD
17
Margin Requirement Account
573.75 USD

Margin Requirements for Specific crosses

Please note that the leverage for the specific currencies RUB, CNH, TRY, BRL, TRY, CHF, DKK, CZK
and their crosses are as follows.

Lots Maximum Leverage
0-20
100
20-50
50
50-100
20
100+
10

Trading with Dynamic Leverage

Managing your risk is more crucial than ever. Because of the high leverage you can apply on your initial positions, the market conditions and volatility may change significantly in a short period of time so make sure you follow the markets and make informed trading decisions.

Use Leverage to your Advantage

High leverage comes with a higher risk. It is important to stay up to date with the market so you can be sure not to lose all your capital on market volatility. Trading with leverage allows you to control positions that exceed the value of your initial investment. This can maximize potential returns on an investment, but it also increases losses in the event the market moves in the opposite direction.
Few tips to use Leverage in your favour is to:

Join us now and trade CFDS on Forex, Stocks, Cryptos, Indices, Metals and Oil with ultra-low spreads and lightning execution that can make a difference.

Enforcement

We reserve the right to change this policy anytime. Changes will be posted on this policy; therefore you are encouraged to visit and review this policy from time to time. In case you have any queries, please email us at [email protected].

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