Leverage

EFXglobal Offers the Choice and Flexibility to Trade Using Leverage from 1:1 to 1:500


Depending on the account type you open with EFXglobal, you may choose your leverage requirements on a scale from 1:1 to 1:500 and you always have the option to request an increase or decrease of your chosen leverage by contacting our support team. EFXglobal provides a leverage range that helps you choose your preferred risk level, however we do not recommend trading close to a leverage of 500:1 due to the high risk it involves.

Leverage and margin are related concepts in trading and they allow you to open positions greater that the available capital in your trading account. In CFD trading, leverage is calculated as is the inverse of the margin rate. For example, if a trading product has a margin of 2%, then the maximum corresponding leverage on the account is 50 times, or 1:50. Using a leverage ratio of 1:50 allows you to open a position of $50 for every $1 in reserved capital.

The purpose of using leverage is to increase your potential return on investment, however it also leads to significant risks in volatile market conditions with fast price movements. Please refer to our full risk disclosure statement and speak with your account manager regarding leverage if you have any questions.


Monitoring Your Leveraged Positions


At EFXglobal you may control your real time risk exposure by monitoring your used and free margin levels inside your account. Used margin refers to the amount of your capital required to sustain a trading position that you have entered. Free margin refers to the amount of capital remaining in your trading account and it fluctuates according to your account equity. You may open additional positions with your free margin level and your free margin would also act to absorb any trading losses. Used margin and free margin together make up your account equity. Please click here to read all about margin.