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Dynamic Leverage

What is Dynamic Leverage?

Dynamic leverage represents an automated capability empowering traders to finely tune their risk exposure and capitalize on potential gains. Unlike static leverage models, dynamic leverage intelligently adapts to prevailing market conditions, amplifying leverage for smaller positions while dialing it back for larger ones.

An essential benefit of dynamic leverage is its capacity to boost capital efficiency. Through the strategy of raising leverage in low-risk situations and lowering it in high-risk conditions, investors can make better use of their capital while upholding careful risk management principles. This method offers increased flexibility in allocating portfolios and empowers investors to respond to shifting market conditions with greater agility.

Dynamic Leverage Tiers

Dynamic leverage tiers are designed to give traders greater flexibility and control over their risk exposure. By adjusting the leverage ratio according to the size of their positions, traders can optimize the use of their capital while minimizing the potential for substantial losses.

Forex Majors & Minors

Tier Level
Notional value (base currency)
Lots
Leverage (1:X)
Margin (%)
Tier 1
0 – 100,000
0-1
1000
0.1
Tier 2
200,000 – 1,000,000
2-10
500
0.2
Tier 3
1,000,000 – 2,000,000
11-20
200
0.5
Tier 4
2,000,000 – 10,000,000
21-100
100
1
Tier 5
10,000,000 – 15,000,000
101-150
50
2
Tier 6
15,000,000 – 20,000,000
151-200
25
4
Tier 7
20,000,000 – 30,000,000
201-300
10
10
Tier 8
More than 30,000,000
301+
5
20

Forex Exotics

Tier Level
Notional value (base currency)
Lots
Leverage (1:X)
Margin (%)
Tier 1
0 – 100,000
0-1
200
0.5
Tier 2
100,000 – 1,000,000
2-10
100
1
Tier 3
1,000,000 – 2,000,000
11-20
50
2
Tier 4
2,000,000 – 4,000,000
20-40
25
4
Tier 5
4,000,000 – 6,000,000
41-60
10
10
Tier 6
over 6,000,000
60+
5
20

Metals

Tier Level
Lots
Leverage (1:X)
Margin (%)
Tier 1
0-2
400
0.25
Tier 2
2-5
200
0.5
Tier 3
5-20
100
1
Tier 4
20-50
50
2
Tier 5
51+
10
10

Indices

Tier Level
Lots
Leverage (1:X)
Margin (%)
Tier 1
0-10
300
0.33
Tier 2
11-20
200
0.50
Tier 3
21-50
100
1.00
Tier 4
51-100
50
2.00
Tier 5
101-200
33
3.00
Tier 6
More than 201
25
4.00

Commodities

Tier Level
Lots
Leverage (1:X)
Margin (%)
Tier 1
0-10
100
1.00
Tier 2
11-20
50
2.00
Tier 3
21-50
25
4.00
Tier 4
More than 51
10
10.00

Energies (WTI, BRENT)

Tier Level
Lots
Leverage (1:X)
Margin (%)
Tier 1
0-5
200
0.50
Tier 2
6-20
100
1.00
Tier 3
21-50
50
2.00
Tier 4
51-200
25
4.00
Tier 5
More than 200
10
10.00

Energies (NATGAS)

Tier Level
Lots
Leverage (1:X)
Margin (%)
Tier 1
0-5
50
2.00
Tier 2
6-20
25
4.00
Tier 3
More than 20
10
10.00

Cryptocurrencies (BTC, ETH)

Tier Level
Lots
Leverage (1:X)
Margin (%)
Tier 1
0-5
50
2.00
Tier 2
6-15
25
4.00
Tier 3
16-30
10
10.00
Tier 4
Over 30
5
20.00

Other Cryptocurrencies

Tier Level
Lots
Leverage (1:X)
Margin (%)
Tier 1
0-10
20
5.00
Tier 2
11-20
10
10.00
Tier 3
More than 20
5
20.00
How to calculate margin requirement: Volume x Contract size x instrument price
Lots
Margin (%)
Margin Formula
Margin Required
1
0.1
1 x 100,000 x 1.0800 / 1000
$ 108
9
0.2
9 x 100,000 x 1.0800 / 500
$ 1,944
Total Position: 10 lots
Total account margin requirement:
$ 2,052
How to calculate margin requirement: Volume x Contract size x instrument price
Lots
Margin (%)
Margin Formula
Margin Required
1
0.1
1 x 100,000 x 1.0800 / 1000
$ 108
9
0.2
9 x 100,000 x 1.0800 / 500
$ 1,944
10
0.5
10 x 100,000 x 1.0800 / 200
$ 5,400
Total Position: 20 lots
Total account margin requirement:
$7,452
How to calculate margin requirement: Volume x Contract size x instrument price
Lots
Margin (%)
Margin Formula
Margin Required
1
0.1
1 x 100,000 x 1.0800 / 1000
$ 108
9
0.2
9 x 100,000 x 1.0800 / 500
$ 1,944
10
0.5
10 x 100,000 x 1.0800 / 200
$ 5,400
30
1
30 x 100,000 x 1.0800 / 100
$ 32,400
Total Position: 50
Total account margin requirement:
$39,852
7