What are leverage and Margin?
Leverage enables the trader to trade positions which are larger than the amount of funds in the account. Leverage is a multiplier which shows how much bigger an open position is than the margin against which it is opened.
For example if the position size is $10,000 and the used margin is 25$(see example 1.1) $10,000/$25=X400 leverage.
Margin is leverage expressed in percentage terms; for example if the leverage level is X400 margin will be 1/400=0.25%. Margin amount is the used margin in Dollar terms for the specific position. For example if the position size is $10,000 the used margin will be $10,000X0.25%=$25 Used Margin.
Example:
|
Position Size
|
Leverage
|
Margin %
|
Used Margin
|
Balance
|
Usable Margin
|
|
2,000,000 USD
|
X400
|
0.25%
|
5,000 USD
|
100,000
|
95,000
|
|
10,000 USD
|
X50
|
2%
|
200 USD
|
1,200
|
1,000
|
|
20,000 USD
|
X50
|
2%
|
400 USD
|
2,800
|
2,000
|
What Kind of leverage we offer:
Currencies
Maximal leverage X400 (For all pairs)
Minimal margin 0.25% (For all Pairs)
Minimal Lot size: 10,000 units
Commodities-
Maximal leverage X50
Minimal margin 4%
Minimal Lot size for Gold and Silver-: 10 units
Minimal Lot Size for Oil: 100 units
Indices
Maximal leverage: X50
Minimal margin: 2%
Minimal Lot size: 10 units
How Can I change my leverage level with the platform?
The Etoro flexible platform enables the trader to alter the leverage level and margin of each position to suit his personal risk-reward strategy with just a click.
Important Notice: The leverage available on positions carried over the weekend may vary. For more information please see over weekend section.
