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Accounts / Leverage & Margin

Leverage & Margin

Leverage lets you control a larger position with less capital — amplifying both gains and losses. Here's exactly how leverage and margin work at ProPrimeFX, with a worked example.

1:500Max leverage
100%Margin call
20–50%Stop out
YesNeg. balance protection
The basics

What are leverage and margin?

Leverage lets you open a position larger than your account balance. At 1:500, $200 of margin can control a $100,000 position.

Margin is the deposit required to open and maintain that position. It is set aside from your balance, not a fee — it's returned when you close the trade.

Because leverage multiplies both profits and losses, disciplined position sizing and stop-losses are essential.

Worked example — EUR/USD

Position size1.00 lot (100,000)
Price1.0850
Leverage1:500
Notional value$108,500
Required margin$217
By asset class

Maximum leverage & margin

Leverage limits vary by asset class to reflect each market's volatility.

Asset classMax LeverageMargin Requirement
Forex majors1:5000.20%
Forex minors / exotics1:2000.50%
Metals (Gold, Silver)1:2000.50%
Indices1:2000.50%
Energies1:1001.00%
Shares CFDs1:205.00%
Cryptocurrencies1:1010.00%
Stay protected

Margin call & stop out

  • Margin call at 100% — a warning that your equity is nearing the required margin.
  • Stop out at 20–50% — positions are automatically closed to prevent further loss, depending on account type.
  • Negative balance protection — you can never lose more than your deposited funds.

Leverage is a powerful tool, not a shortcut. Use stop-losses, size positions carefully and never risk more than you can afford to lose.

TRADE RESPONSIBLY

Put your strategy to work

Open an account to access flexible leverage up to 1:500 with built-in risk controls and negative balance protection.