What is Leverage? Super Simple Version — Monaxa

What is Leverage?
Super Simple Version

Trader checking markets on her phone

Understanding Leverage

YOU PUT IN
$100
your margin
1:100 Leverage
YOU CONTROL
$10,000
position size

How it works

1

The amount of money you fund the account with is your margin.

2

Leverage multiplies that, so you trade with far more capital.

3

Small market moves now have a much bigger impact.

THE CATCH... THE SAME FORCE WORKS IN BOTH DIRECTIONS

Amplified gains

A small favourable move is multiplied into a much bigger profit.

Amplified losses

A small unfavourable move is multiplied into a much bigger loss.

Watch your margin. If the market moves against you, positions can be closed automatically. But with our negative balance protection tech, you cannot loose more than your initial capital.

Upper limit

Leverage May Vary

Think of every leverage level as a ceiling. It's the most you can use, not a fixed figure. The actual leverage available adjusts to the instrument and your trade volume.

Low volatility instrumentsup to 1:400
High volatility instrumentsavailability drops

Actual leverage may differ depending on the instrument, equity and trade volume.

Most of the time you can reach 1:400 on low-volatility instruments; on higher-volatility ones, availability drops.

You can always opt for lower leverage than what's offered.

Leverage Tiers 

Margin Requirement Formulas

FX pairs

Margin=Lot Volume×Contract Size÷Leverage×Margin

Metals

Margin=Lot Volume×Contract Size×Market Price÷Leverage×Margin %÷100

Energies CFD, Stocks CFD, Indices CFD

Margin=Lot Volume×Contract Size×Market Price×Margin %÷100

Pick Your Leverage And Go

Open an account in minutes and set the leverage that suits your strategy — on the platform you already know.

What is Leverage?
Super Simple Version

Trader holding a tablet with a leverage graphic

Understanding Leverage

Leverage is a trading tool that lets you control more money than you have.

YOU PUT IN
$100
your margin
1:100 Leverage
YOU CONTROL
$10,000
position size

How it works

1

The amount you fund your account with is your margin.

2

Leverage multiplies it so you can trade with far more capital.

3

Small market moves now have a much bigger impact.

THE CATCH... SAME FORCE, BOTH DIRECTIONS

Amplified gains

A small favourable move is multiplied into a much bigger profit.

Amplified losses

A small unfavourable move is multiplied into a much bigger loss.

Watch your margin. Positions can be closed automatically if the market moves against you. Our negative balance protection means you cannot lose more than your initial capital.

Upper limit

Leverage May Vary

Think of every leverage level as a ceiling — the most you can use, not a fixed figure.

Low volatility instrumentsup to 1:400
High volatility instrumentsavailability drops

Actual leverage may differ depending on the instrument, equity and trade volume.

Most of the time you can reach 1:400 on low-volatility instruments; on higher-volatility ones, availability drops.

You can always opt for lower leverage than what's offered.

Monaxa's Leverage Tiers

Margin Requirement Formulas

FX pairs

Margin=Lot Volume×Contract Size÷Leverage×Margin

Metals

Margin=Lot Volume×Contract Size×Market Price÷Leverage×Margin %÷100

Energies CFD, Stocks CFD, Indices CFD

Margin=Lot Volume×Contract Size×Market Price×Margin %÷100

Pick Your Leverage And Go