What are leverage and Margin?

What are leverage and Margin?

Leverage enables the trader to trade positions which are larger than the amount of funds in the account. Leverage is a multiplier which shows how much bigger an open position is than the margin against which it is opened.

For example if the position size is $10,000 and the used margin is 25$(see example 1.1) $10,000/$25=X400 leverage.

Margin is leverage expressed in percentage terms; for example if the leverage level is X400 margin will be 1/400=0.25%. Margin amount is the used margin in Dollar terms for the specific position. For example if the position size is $10,000 the used margin will be $10,000X0.25%=$25 Used Margin.

Example:

Position Size	Leverage	Margin %	Used Margin	Balance	Usable Margin
2,000,000 USD	X400	0.25%	5,000 USD	100,000	95,000
10,000 USD	X50	2%	200 USD	1,200	1,000
20,000 USD	X25	4%	800 USD	2,800	2,000

What Kind of leverage we offer:

Currencies

Maximal leverage X400 (For all pairs)

Minimal margin 0.25% (For all Pairs)

Minimal Lot size: 10,000 units

Commodities- Gold & Silver

Maximal leverage X25

Minimal margin 4%

Minimal Lot size for Gold: 10 units

Minimal Lot Size for Silver-: 10 units

How Can I change my leverage level with the platform?

The Etoro flexible platform enables the trader to alter the leverage level and margin of each position to suit his personal risk-reward strategy with just a click.