CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 50% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Leverage and Margin

Leverage and Margin

Leverage amplifies your market exposure. Understand how it works and the risks involved.

What is Leverage?

With x10 leverage, $1,000 gives you $10,000 exposure. Both profits and losses are amplified.

Profit Example

$1,000 x10 leverage = $10,000 exposure
Asset rises 5% → Profit: $500 (50% ROI)

Loss Example

$1,000 x10 leverage = $10,000 exposure
Asset drops 5% → Loss: $500 (50% loss)

What is Margin?

Margin is the collateral to open a leveraged position. x10 leverage = 10% margin ($1,000 for $10,000 position).

Max Leverage by Asset (ESMA/Retail)

Asset Leverage Margin
Major Forex x30 3.33%
Minor Forex x20 5%
Major Indices x20 5%
Gold x20 5%
Other Commodities x10 10%
Stocks / ETFs x5 20%
Crypto CFDs x2 50%

Margin Call & Close-Out

Margin Call: Equity below 50% of required margin — add funds or close positions.

Close-Out: Positions auto-closed to protect from negative balance.

Risk Management

  • Always use stop-loss on leveraged positions
  • Risk max 1-2% of account per trade
  • Start with lower leverage while learning
  • Practice on demo before real money

Risk Warning: CFDs are complex instruments with high risk of losing money due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider.