Leverage lets you control a larger position with a smaller deposit. Understand how margin works, what triggers a margin call - and calculate your requirement instantly.
For illustration only. Margin is shown in USD. Actual requirements depend on live prices and account conditions.
Two sides of the same coin - leverage amplifies your market exposure, margin is the deposit that backs it.
Leverage lets you open a position much larger than your deposit. With 1:500 leverage, $1,000 controls a $500,000 position - magnifying both potential profits and potential losses.
Margin is the amount of your own funds required to open and maintain a leveraged position. It isn't a fee - it's set aside as collateral and released when you close the trade.
Buying 1 lot of EUR/USD at 1.0846 with 1:500 leverage.
Leverage varies by instrument and is capped to manage risk in more volatile markets.
| Asset Class | Max Leverage | Margin Requirement |
|---|---|---|
| Forex Majors | 1:500 | 0.20% |
| Forex Minors & Exotics | 1:200 | 0.50% |
| Metals (Gold & Silver) | 1:500 | 0.20% |
| Indices | 1:500 | 0.20% |
| Energy | 1:500 | 0.20% |
| Shares CFDs | 1:20 | 5.00% |
| Crypto CFDs | 1:200 | 0.50% |
Your margin level shows how healthy your account is. If it falls too low, protective measures kick in.
Equity / Used Margin x 100%. The higher the percentage, the more buffer your account has.
At a 100% margin level you're warned to add funds or reduce exposure before positions are at risk.
If the margin level keeps falling, positions are automatically closed (from 20% on Standard) to protect your account.
While leverage can magnify profits, it equally magnifies losses - you can lose more than your initial deposit. All PROACTIVE TECH LTD accounts include negative balance protection, but you should only trade with capital you can afford to lose. Use stop-loss orders and manage your risk carefully.
Open an PROACTIVE TECH LTD account with flexible leverage up to 1:500 and transparent margin conditions.