What is leverage and effective leverage?

Leverage allows you to open a trade using a small portion of your actual account balance and borrow the rest.

For example, let us say you want to open a position worth $100,000. With no leverage on your account (a level of 1:1), you would have to put up the full value of your position in funds to open it ($100,000). However, using an example of 100:1 leverage on your account, you would only need $1,000 in funds to open and maintain that position.

Leverage is often called a "double-edged sword” as it magnifies both potential profits and potential losses. The higher the leverage, the higher the potential profit/loss and risk.

Please note: Axi does not offer leverage limitations during news trading.

For more information about margin and leverage, please visit our Margin and Leverage page or watch the video below.

Account leverage factor

Margin and leverage are negatively correlated. While calculating the margin requirement for some instruments, we need to understand which of those include leverage as a factor. Use the table below as a guide:

Maximum leverage available

The maximum available leverage differs depending on your country of residence. Please contact your Account Manager or our Client Services team to find out the maximum leverage available for your region and account type.