Trading Forex with Leverage
One of the key aspects of Forex trading is the ability to trade using high leverage. Leverage determines the required margin and amount of funds you have to have in your account in order to take a position. In simple terms, higher leverage means a lower margin requirement to place a trade.
Of course it is important to understand the risks involved in high leverage and find the appropriate level to suit your trading style as the effect of leverage is that both gains and losses are magnified. Many clients use Expert Advisors to trade on MetaTrader 4, and popular EAs often include money management tools designed to place the correct trade volume based on the size of the account. Not all EAs feature money management tools so it is important to manually 'supervise' your automated trading.
GO Markets allow you the option of choosing your leverage from 1:1 up to 500:1, but as standard, accounts are setup as 100:1.
Leverage ratios of up to 500:1 may not suit your trading style and may be too risky for some. In order to assist you in minimising risk, we have leverage restrictions in place. To check how much leverage you can use on your account use the simple table below:
|Available Leverage ||Maximum Account Balance|
|500 : 1||$10,000|
|400 : 1||$25,000|
|300 : 1||$100,000|
|200 : 1||$250,000|
|100 : 1||$500,000|
|50 : 1||$500,000+|
All GO Markets accounts are set as standard to be 100:1. To request a change to your account's leverage ratio, please click here. GO Markets reserve to right to change your account leverage without notice should your account balance exceed the maximum allowed for that currency.