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.
Important Notice: The leverage available on positions carried over the weekend may vary. For more information please see over weekend section.
