This is an article about leverage at HotForex.
HotForex offers high leverage trading up to 1000x. Although HotForex offers high leverage trading, not all products can be traded at 1000x.
In addition, leverage is automatically limited by certain conditions.
In this article, I will explain what leverage is for beginners, the maximum leverage and leverage limits of HotForex, as well as how to operate with less risk.
- What is the leverage?
- What is the maximum leverage of HotForex?
- Leverage limits of HotForex
- How to Change Leverage
What is Leverage?
Leverage means the principle of leverage.
Using the principle of leverage, you can lift a large stone with a small power.
In the forex world, it refers to a system that allows you to make large trades with a small amount of margin (money).
Leverage is often expressed as “100 times”, “100x” or “1:100”.
In the case of 100 times leverage, it is possible to trade 100 times the amount of margin.
If your margin is $100, you can trade $10,000.
A $100,000 margin allows you to trade $10,000, and a $100,000 margin allows you to trade $10,000,000.
Differences in Required Margin due to differences in leverage
The Required Margin can be calculated using the following formula
Required Margin = Number of lots × Market price ÷ Leverage
Let’s calculate exactly how much the required margin changes with different leverage.
For example, let’s assume the following trade
Currency pair: EURUSD
Number of trades: 1 lot (=100,000 currency)
Market price: 1 EURO = 1.200 USD
100,000 EUR × 1.200 ÷ 1 ＝ 120,000 USD
100,000 EUR × 1.200 ÷ 100 ＝ 1,200 USD
100,000 EUR × 1.200 ÷ 500 ＝ 240 USD
100,000 EUR × 1.200 ÷ 1000 ＝ 120 USD
Thus, if you take advantage of HotForex’s maximum 1000x leverage, you can trade 100,000 Euros for only $120.
Trading Leverage at HotForex
HotForex maximum leverage is 1000x, but actually not all instruments can be traded at 1000x.
Depends on account type
At HotForex, the maximum leverage varies depending on the account type.
As shown below, only the MICRO account has a maximum leverage of 1000x.
The other accounts, PREMIUM, ZERO SPREAD, AUTO with 500x, PAMM with 300x and HFCOPY with 400x.
| Account Type | Max Leverage |
|---|---|
| MICRO | 1:1000 |
| PREMIUM | 1:500 |
| ZERO SPREAD | 1:500 |
| AUTO | 1:500 |
| PAMM | 1:300 |
| HFCOPY | 1:400 |
Restricted by account balance
The maximum leverage at HotForex depends on your account balance.
If the account balance exceeds $300,000, the maximum leverage is limited to 75x.
However, if you are a general trader, it is unlikely that your account balance will exceed $300,000, so you don’t need to worry about this.
Depends on the trading instrument
HotForex is a very attractive forex broker that offers a wide variety of trading instruments, especially gold has very low commissions.
In fact, only currency pairs can be traded with up to 1000x leverage at HotForex.
For CFDs on stock indices, energy and gold, the maximum leverage is lower for each stock. Even within the same product, the leverage varies by symbol.
| Products | Max Leverage |
|---|---|
| Currency Pair | 1:1000 (Only Russian Ruble is 1:100) |
| Stock Index | 1:5 to 1:50 |
| Energy | 1:66 |
| Metal | 1:20 to 1:200 |
| Commodity | 1:66 |
| Cryptocurrency | 1:10 (Only Ripple is 1:5) |
| Stocks | 1:14 |
| Bond | 1:50 |
All of HotForex’s products and the maximum leverage that can be traded with each of them are explained in detail in the separate article “HotForex All Products and Trading Conditions | Forex and CFDs“. Please take a look.
Limited to a maximum of 500x when the bonus is applied.
HotForex offers a deposit bonus program named “30% Rescue Bonus”.
The maximum leverage for MICRO accounts is 1000x, but if you apply the 30% Rescue Bonus, the maximum leverage will be automatically limited to 500x.
You need to choose whether you want to apply the 30% Rescue Bonus or not when you open your account, but if you choose the MICRO account and apply the 30% Rescue Bonus, the maximum leverage selection field will be automatically changed to 1:500.
For more information about HotForex bonuses, please refer to our other article “HotForex Bonus Program Review | How to get bonus?“
Maximum leverage for PAMM and HFCOPY accounts is fixed.
The maximum leverage for PAMM and HFCOPY accounts is fixed at 300x and 400x respectively. They cannot be changed.
For general trading accounts, such as MICRO and PREMIUM accounts, the maximum leverage can be changed to reduce the risk.
PAMM account is a service where funds are deposited and managed by professional traders, and
HFCOPY account is a dedicated account for copy trading.
Each of these accounts is managed by professional traders, but the volume of trades can be adjusted by using different parameters instead of changing the leverage.
For more information about HotForex copy trading, please refer to the separate article “HotForex Copy Trading | Powerful Trading Automation“. The article also explains the difference between HotForex EA and HotForex copy trading and how to find a strategy provider with good performance. Please have a look.
Recommended operation
Especially in the world of forex, people focus on the high leverage, but the higher leverage is not the better.
Leverage is a double-edged sword.
If you trade a product with high volatility with full leverage, a small price reversal will result in an immediate loss.
This is not a recommendation, but rather a principle of leveraged trading.
- Follow strictly the money management rules
- Understand the margin requirements and the amount per pips
- Adjust the number of lots and leverage
When you increase the leverage, the amount of fluctuation per pips becomes larger.
It is necessary to decide beforehand how much you can bear in case the price moves against your expectations. After properly planning your trading strategy, prepare sufficient funds and decide on the number of lots to order.
At this time, you can also change the leverage in advance to reduce the risk of loss cutting in case of unexpected price movements.
This means that rather than operating with 1000 times leverage, you can reduce the risk to one tenth by using 100 times leverage.
How to Change Leverage at HotForex
The leverage of HotForex can be changed for each account.
You can change the leverage for each account, so you can create additional accounts, change the instruments for each account, and reduce the leverage for the account with the highest volatility to reduce the risk.
You can change the leverage of HotForex by following the steps below.
Log in to myHF
Login to myHF (member page) from the HotForex home page.
Select the target account
From the list of accounts in My Account, select “Change Leverage” for the account you want to change the leverage of.
Change Leverage
Confirmation of leverage change
When you change the leverage of HotForex, you need to pay attention to the following.
Cannot change the leverage when there is an open position and margin level less than 100%
Leverage can be changed up to 5 times for each account
After confirming the above, click “Change Leverage”.
Leverage has been changed
The change in leverage will be reflected immediately.
For more information on how to create an additional account at HotForex and how to operate with less risk by utilizing multiple accounts, please refer to the separate article “How to Open HotForex Additional Account | How to Reduce Risks“.
＼Just 1 minutes!!／
Summary
How did you like it?
At HotForex, not all products can be traded with 1000x leverage.
It is also possible to take advantage of the characteristics of leverage to make larger profits or trade with less risk.
Please make sure you understand leverage and use the leverage changing function to manage your trading safely.
＼Just 3 minutes!!／
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