Leverage in forex trading, which allows traders to control larger amounts of money with a smaller personal investment, can significantly increase potential gains, but it simultaneously increases the risk of substantial losses. Typically provided in different ratios ranging from 1:10 to 1:400, leverage amounts are dictated by margin requirements.
If used cautiously and in accordance with sophisticated risk management strategies, leverage can indeed enhance profits without exposing traders to reckless risk.
To learn more about the relationship between leverage and margin, read our detailed blog post about this topic: https://trueforexfunds.com/leverage-and-margin/
At True Forex Funds, we offer as high as 1:100 leverage to our traders.
The following leverages match the needs of our professional traders who acknowledge the significance of risk management. We set up the best conditions based on the feedback from our traders, with the following fixed leverages:
1:100 Leverage
- Forex Pairs: Forex, or foreign exchange, pairs involve trading one currency for another. For example, EUR/USD is a forex pair that involves trading the Euro against the US Dollar. The leverage of 1:100 means that for every dollar you invest, you control $100 worth of the forex pair.
- Metals: Trading metals involves speculating on the price of precious metals like gold, silver, platinum, or palladium. The leverage of 1:100 applies here as well, implying you control $100 worth of metal for every dollar invested.
- Energies: This refers to trading in energy commodities like oil, natural gas, and others. Again, a leverage of 1:100 means for every dollar you invest, you control $100 worth of the energy commodity.
1:50 Leverage
- Indices: An index (plural is indices) is a portfolio of stocks representing a particular market or a portion of it. For example, the S&P 500 is an index of the 500 largest US companies.
1:10 Leverage
- Stocks (CFD): CFD means Contract for Differences. It means you’re not trading on the actual stock market, but through a derivative product that pays the differences in the settlement price between the open and closing trades. With a leverage of 1:10, for every dollar you invest, you control $10 worth of the stock.
1:5 Leverage
- Cryptocurrencies: Cryptocurrencies are digital or virtual currencies using cryptography for security. These include Bitcoin, Ethereum, and many others. A leverage of 1:5 on cryptocurrencies implies that for every dollar you invest, you control $5 worth of the cryptocurrency.
True Forex Funds Leverage – Frequently Asked Questions
Leverage is a tool that amplifies your trading capacity. For instance, with a leverage of 100:1 offered by True Forex Funds, every dollar you invest controls $100 in trading.
Forex pairs involve trading one currency against another, like USD/EUR. At True Forex Funds, we offer a leverage of 1:100 on forex pairs, meaning every dollar you invest controls $100 in forex pairs.
Trading Metals and Energies involves commodities like gold, silver, oil, and gas. At True Forex Funds, we offer a leverage of 1:100. Hence, for every dollar you invest, you control $100 worth of these commodities.
Indices are a group of stocks representing a market or a sector. At True Forex Funds, a leverage of 1:100 on indices means that for every dollar you invest, you control $100 of the index.
Cryptocurrencies, like Bitcoin or Ethereum, are digital currencies. At True Forex Funds, with a leverage of 1:5, every dollar you invest controls $5 worth of the cryptocurrency.