Leverage Calculator
Calculator Settings
Currency your account is denominated in
Amount of margin you wish to use
1 lot = 100,000 units
Results
Total value of the trade
Capital required to hold position
Control 0.0x your margin
0.1 lots = 10000 EUR
Of your margin at 2% price change
Common Leverage Ratios
Low risk, stable trading
Balanced approach
Higher risk & reward
Very high risk
Leverage Example with $100 Account
Control $1,000 with $100 margin
Control $5,000 with $100 margin
Control $10,000 with $100 margin
Remember: Higher leverage means both profits and losses are magnified. A 2% move against a 50:1 leveraged position can wipe out 100% of your margin.
Understanding Forex Leverage
What is Forex Leverage?
Leverage is investing money with borrowed funds. In Forex, you can buy $10 worth with $1 margin (10:1 leverage). It increases potential profits but also amplifies losses.
How to Calculate Leverage?
Leverage ratio = Position Value ÷ Margin Used. For example, a $10,000 position with $100 margin = 100:1 leverage. Our calculator does this automatically for you.
Operating Leverage
Operating leverage is the effective leverage used in your account = Total Open Positions ÷ Total Margin. It cannot exceed your account's maximum leverage limit.
How Much Leverage Should I Use?
Depends on your risk tolerance. A 50:1 leverage means a 2% price move can wipe out your account. Use lower leverage for long-term trading and larger accounts.
What Leverage Should I Use?
Consider: How much can you afford to lose? Do you have a tested trading system? Is this full-time or hobby? Never invest savings you can't afford to lose.
Is Higher Leverage Better?
Absolutely not. A losing system loses faster with higher leverage. With leverage you can lose more than you deposit. Choose appropriate leverage for your scenario, not the highest available.