SuperForex with 1:2000 leverage. Table of Contents

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SuperForex offers up to 1:2000 FX leverage

SuperForex has upgraded the leverage to 1:2000.

Now you can trade with up to 1:2000 leverage on Profi-STP account type of SuperForex.

The leverage can be a great tool to increase the trading volume in your live trading account.

On SuperForex’s Profi-STP account type, the spread is fixed, starting from only 0.0 pips.

Note that there is a small trading commission charged when trading on SuperForex’s Profi-STP account.

SuperForex’s 1:2000 is one of the highest Forex leverage in the world.

Open SuperForex’s Real Account today to experience the trading condition.

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What is Leverage in Forex?

By using a leverage, you can lift a heavy object that you could not move by yourself, because the force I applied is multiplied by the leverage.

The leverage of FX also has a very similar function, and you can trade by moving a thousand times the amount of margin deposited as collateral.

A mechanism that allows you to trade large amounts with a small amount of money is called the “leverage effect”.

For example, in order to invest 25,000 dollars, in the case of products such as foreign currency deposits, of course, 25 million dollars (2.5 million yen) will be invested.

On the other hand, FX can open a position of $25,000 with a margin of about $10 with SuperForex.

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Don’t place too much orders

There is a point to be aware of even with high-leverage.

While maximizing leverage (building a full position with low margin) can be very profitable, it is also dangerous.

For example, some traders prepare 1 million USD in funds and take a position for the full amount of 1 million USD.

Of course, doing such a transaction increases risk.

However, in reality, a “safety device” (loss cut rule) is provided, and the transaction is automatically terminated before the loss grows up to this point.

Anyway, we want you to think more concretely that if you increase the leverage ratio unnecessarily, the risk increases accordingly.

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Make sure you have enough margin

When making a leveraged transaction in the FX market, margin requirement, margin maintenance rate, and loss cut % are important.

The margin requirement is the minimum amount of money required as collateral to maintain a position that leverages 2000 times leverage (in the case of individual accounts with SuperForex).

If you order a buy position of $25,000, the margin requirement is “25,000 ÷ 2000 = 12.5 USD”.

However, if the exchange rate fluctuates and a foreign exchange loss (valuation loss) occurs after you have opened a position, your net assets will decrease by that amount.

If you deposit only the required margin, you will immediately fall into a margin shortage.

Therefore, in practice, it is a rule to put more money than required margin into the account and to carry out transactions in a system that can withstand exchange loss within a certain range.

The margin maintenance rate is a barometer that shows how much the risk of margin shortage increases when a foreign exchange loss occurs.

It is calculated by the formula “net assets (assets when all transactions are completed at that time) / required margin x 100”.

However, if the margin maintenance rate falls below the certain %, margin shortage will occur.

Then, in SuperForex’s live trading account, all the positions are settled automatically.

This is called loss cut (stop out).

When the margin maintenance rate of the account becomes the % or less, payment is automatically set to prevent further loss expansion.

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Invest smart with high leverage

What we want to keep in mind in FX is to avoid building a large position unnecessarily just because we can move up to 3000 times the margin.

This is not difficult at all, and can be easily implemented if you are aware of effective leverage.

Effective leverage is a measure of how many times your current position has reached your net worth.

In other words, it is the actual operational leverage.

If you take care that the effective leverage does not become too high, you will naturally reduce the risk.

Generally, it is said that if the effective leverage is tripled, it will not be easy to run into a margin shortage.

At the beginning, it’s a good idea to check the feel at this leverage system sand gradually increase the effective leverage as you get used to it.

In trading, it is said that “small profit margin” is effective, in which the loss is kept as small as possible (even if the reading is misleading, it is not too sticky) while the profit is extended as much as possible (the reading is strong and sticky).

From that point of view, it may be a good idea to set a stop loss order (closeout sale to stop loss growth) at your discretion before a stop out occurs.

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