Leverage is the use of borrowed funds in order to open larger positions than what is available with cash balance alone. It describes a ratio of borrowed funds against the trader’s own funds. You can think of it as a loan from your broker.
Leverage amplifies both potentials of profit and loss, so it is an instrument that should be handled with care and consideration. A highly leveraged trade can result in a bigger profit, but it can just as quickly deplete your account. Therefore, when choosing a leverage, you should choose one that you are comfortable with. Less experienced traders often opt out to use smaller leverages, and increase the amount comfortably with experience.
MTrading offers the following leverage based on account type:
M.Premium | 1:25 | 1:100 | 1:500 | 1:1000 |
M.Pro | 1:200 | 1:500 | 1:1000 | |
M.Cent | 1:1000 |
You can find out more leverage rates and additional details on our website.