Forex Leverage Explained
Forex Leverage is an investment technique in which you use a small amount of your own money to make an investment of much larger value, giving you significant financial power.
This can heighten profits and losses and should be used wisely.
How does Forex Leverage work?
Example:
Trader A has $5000 USD – If Forex Trader A has an account leverage of 500:1 and they wish to use $1000 on one trade as margin, they will have exposure of $500,000 in base currency
($1000) = 500 x $1000 = $500,000 (Trade value)
Trader B has $5000 USD – If Forex Trader B has an account leverage of 100:1 and they wish to use $1000 on one trade as margin, they will have exposure of $100,000 in base currency
($1000) = 100 x $1000 = $100,000 (Trade value)
What Forex Leverage does Vantage FX UK offer?
Vantage FX UK standard Forex leverage starts at 100:1 rising to a maximum of 500:1. The offer of 500:1 is only for approved accounts and is dependant on the level of account funds. To learn more please visit our Forex training section.
By submitting an increase in trade leverage request you accept that this can result in high risk and severe or total account loss. We are a non-advisory general advice broker and we will not provide you with investment or personal advice. Please consult a registered financial advisor. Margin Forex is very high risk and Forex Leverage should be used wisely.
