What is Leverage?

Leverage is described as the use of borrowed funds, such as “margin,” to enable a Forex trader to access greater volumes of funds. This has the potential to increase earnings and losses, therefore it should be utilized with caution.

Examples of Leverage

Trader A has $5000 USD:  
If Trader A has a 10:1 account leverage and wants to utilize $1000 as margin on one Forex trade, they will have a $10,000 exposure in base currency ($1000) = 10 x $1000 = $10,000 (trade value).

Forex Trader B has $5000 USD:
If Forex Trader B has a 100:1 account leverage and wishes to utilize $1000 as margin on one Forex trade, they will have a base currency exposure of $100,000 ($1000) = 100 x $1000 = $100,000 (trade value).

What Leverage Does HoTtrades Offer?

The regular leverage at HotTrades is 100:1. HotTrades can provide a maximum leverage of 500:1. Only approved accounts are eligible, and funding approved for leverage more than 100:1 will be limited.

If you wish to get access to higher leverage, kindly contact us. By submitting an increase in trade leverage request, you accept that this could result in high risk or total account loss. HotTrades is a non-advisory Forex broker and will not provide you with investment or personal trading advice. For such advice, please consult a registered financial advisor.

Use of Forex margin is risky and leverage should be utilized wisely.

Visit our instrument specification tables to study all leverages offered.

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