Leverage is a powerful trading tool that allows you to control larger positions with a smaller amount of capital. This guide explains how to adjust your trading account leverage and the compliance restrictions that may apply.
Understanding Trading Account Leverage
Leverage enables you to amplify your trading power by controlling positions larger than your account balance. However, maximum leverage settings are subject to:
Platform capabilities
Regulatory compliance requirements
Risk management policies
Specific instrument limitations
Important: Higher leverage increases both potential profits and potential losses. Always trade responsibly and understand the risks involved.
How to Change Your Leverage in the Client Portal
Follow these steps to adjust your trading account leverage:
Step 1: Access Your Account Settings
Log in to your FXTRADING.com Client Portal
Navigate to your account dashboard
Step 2: Locate Your Trading Account
Find the trading account you wish to adjust
Review the current leverage setting displayed
Step 3: Access Leverage Settings
Click the three-dot menu (⋮) next to the selected account
Select "Change Maximum Leverage" from the dropdown menu
Step 4: Choose Your Desired Leverage
Select your preferred leverage ratio from the dropdown menu (e.g., 1:100, 1:500, 1:2000)
If your desired ratio is not listed, select "Custom" and specify your preferred ratio manually
Step 5: Confirm the Changes
Click "Continue" to proceed
Review the changes and click "Confirm" to apply the new leverage setting
Note: Leverage changes typically take effect immediately, but may require you to close existing positions in some cases.
Maximum Leverage by Instrument Type
Different trading instruments have different maximum leverage limits:
Forex Currency Pairs:
Maximum leverage: Up to 1:2000
Available for major, minor, and exotic currency pairs
Subject to account equity and margin requirements
Gold (XAU) Instruments:
Maximum leverage: Up to 1:500
Applies to all gold trading pairs (e.g., XAUUSD)
Lower leverage reflects higher volatility and risk
Other Instruments:
Commodities, indices, and cryptocurrencies may have different leverage limits
Check your Client Portal for specific instrument leverage caps
Leverage limits are displayed when selecting instruments for trading
Understanding Compliance Restrictions
In certain cases, compliance requirements may restrict your ability to adjust leverage to specific ratios. These restrictions are part of FXTRADING.com's regulatory framework to ensure safe and responsible trading.
Common Reasons for Leverage Restrictions:
Regulatory Constraints:
Regional regulations may limit maximum leverage in your jurisdiction
Compliance with local financial authorities' requirements
Protection measures for retail traders
Risk Management Policies:
Account equity levels may trigger automatic leverage adjustments
High-risk trading patterns may result in leverage limitations
Specific instruments may have reduced leverage during high volatility periods
Account-Specific Factors:
New accounts may have temporary leverage restrictions
Accounts under review may have limited leverage adjustment capabilities
Certain account types may have pre-set leverage limits
Actual Usable Leverage vs. Maximum Leverage
It's important to understand the difference:
Maximum Leverage:
The highest leverage ratio you can set on your account
Represents the upper limit for position sizing
Actual Usable Leverage:
Varies based on your current account equity
Affected by open positions and margin requirements
Displayed in real-time in your Client Portal
May be lower than your maximum leverage setting
Example:
Maximum Leverage: 1:2000
Account Equity: $1,000
Open Position Margin: $500
Actual Usable Leverage: Calculated based on free margin available
Important Considerations
Before Changing Leverage:
Understand the increased risk associated with higher leverage
Review your current open positions and margin requirements
Consider your trading strategy and risk tolerance
Ensure you have adequate funds to support your positions
After Changing Leverage:
Monitor your margin levels closely
Adjust position sizes accordingly
Be aware of margin call thresholds
Maintain sufficient account equity
Frequently Asked Questions
Q: Why can't I set my leverage to 1:2000? A: Leverage restrictions may be due to regulatory requirements in your region, risk management policies, or account-specific factors. Contact our support team for clarification.
Q: Will changing leverage affect my open positions?
A: Changing leverage typically does not directly affect open positions, but it will impact your ability to open new positions and your margin requirements.
Q: How often can I change my leverage?
A: You can adjust your leverage as needed, but frequent changes are not recommended. Choose a leverage level that suits your trading strategy.
Q: Does lower leverage mean lower risk?
A: Lower leverage reduces the size of positions you can open, which can help manage risk. However, risk management also depends on position sizing, stop-loss usage, and overall trading discipline.
Need Assistance?
If you encounter issues adjusting your leverage or have questions about compliance restrictions:
Live Chat: Available through your Client Portal for immediate support
Email Support: Contact [email protected] with your account details
Related Topics:
Understanding margin requirements
Risk management strategies
Account types and their features
Our support team is ready to help you understand and optimize your leverage settings for your trading needs.