What is Forex leverage? How does it work? Table of Contents

What is Leverage?

When using leverage on Forex trading, less money is required for a higher leverage and the is risk higher.

Leverage is the multiplication of your balance.

This allows you to open bigger trading positions since the margin required will be lowered according to the leverage you have chosen.

Even though with leverage you can make a bigger profit, there is also a risk of having a bigger loss because the positions you open will be of higher volume (lot size).

With XM, you can utilize up to 1:888 leverage which is much higher than the average in the market.

Note that the 1:888 high leverage may not be available for some trading account types and for traders in some jurisdictions.

For more information about the leverage condition, please go to XM Official Website

Go to XM Official Website

How to open XM’s Forex trading account?

Example of Leverage trading

Here is an example of trading with leverage.

Account balance: 100 USD

Account leverage: 1:100

For your trading capital this means 100 * 100 USD = 10,000 USD to trade (instead of 100 USD).

With leverage, you can trade use small amount to trade larger amount of volume.

By utilizing the high leverage, you can also trade Forex and CFDs with XM’s $30 No Deposit Bonus.

$30 is relatively a small amount to trade online, but you can place positions with XM’s 1:888 leverage.

For the list of XM’s all bonus promotions, visit the page here.

Visit XM Official Website

How to change the leverage setting on XM account?

You can change the leverage under the tab “My Account”, and then by clicking the tab Change Leverage in our Members Area.

This method of changing leverage is instant.

To XM’s members area, you can login from XM Official Website.

Go to XM Official Website