This is an article about the leverage of LAND-FX.
LAND-FX is popular for its very low commissions, it is possible to trade with a maximum leverage of 500 times.
However, it is not always possible to trade at 500 times.
There are some conditions.
In this article, I will explain what leverage is for beginners, the maximum leverage and leverage limits of LAND-FX, and how to manage risk with less risk.
- What is the leverage?
- What is the maximum leverage of LAND-FX?
- Leverage limits of LAND-FX
- 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
Thus, if you take advantage of LAND-FX maximum 500x leverage, you can trade 100,000 Euros for only $240.
Trading leverage at LAND-FX
The maximum leverage of LAND-FX is 500x, actually not all products can be traded at 500x at any given time.
Depends on account type
At LAND-FX, the maximum leverage varies depending on the account type.
As you can see below, the Live account has a maximum leverage of 500x,
while the ECN account has a maximum leverage of 200x.
| Account Type | Max Leverage |
|---|---|
| Live Account | 1:500 |
| ECN Account | 1:200 |
Restricted by account balance
The maximum leverage of LAND-FX is limited by the account balance for each account type.
For the Live account, the leverage is limited to a lower level as the account balance increases.
Furthermore, if the number of lots held in the position increases, further restrictions will be imposed.
ECN accounts are limited only by the account balance.
Live Account
| Account Balance | Max Leverage | Restricted by Position |
|---|---|---|
| $500 ~ $49,999 | 1:500 | If open position 50 lots +, 1:200 |
| $50,000 ~ $99,999 | 1:200 | If open position 100 lots +, 1:100 |
| $100,000 ~ | 1:100 | If open position 100 lots +, 1:50 |
ECN Account
| Account Balance | Max Leverage | Restricted by Position |
|---|---|---|
| ~ $99,999 | 1:200 | None |
| $100,000 ~ | 1:100 | None |
Depends on the trading instrument
LAND-FX offers not only currency pairs but also CFD’s on stock indices and metals.
Of these, only currency pairs can be traded with a maximum leverage of 500x.
For CFDs on stock indices, energy and gold, the maximum leverage is lower for each stock.
ECN accounts cannot trade stock indexes and energy CFDs.
All products can be traded in the Live account.
| Products | Max Leverage |
|---|---|
| Currency Pair | 1:500 for Live 1:200 for ECN |
| Stock Index | 1:200 |
| Energy | 1:100 |
| Metal | 1:200 |
All of LAND-FX products and the maximum leverage that can be traded with each of them are explained in detail in the separate article “LAND-FX All Products and Trading Conditions | Forex and CFDs“. Please take 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 500 times leverage, you can reduce the risk to one tenth by using 50 times leverage.
How to Change Leverage at LAND-FX
The leverage of LAND-FX 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 LAND-FX by following the steps below.
Login to Member Page
Login to member page from the top page of LAND-FX official web site.
My Account
Click on “Change Leverage” on the right side of the My Account screen.
レバレッジの変更
If you have multiple accounts, specify the target account and select the leverage you want to change.
In this example, I will change the leverage from 500x to 50x to hedge risks.
Click Submit.
Leverage change successful
Leverage has been changed
The change in leverage will be reflected immediately.
For more information on how to create an additional account at LAND-FX and how to operate with less risk by utilizing multiple accounts, please refer to the separate article “How to Open LAND-FX Additional Account | How to Reduce Risks“.
＼Just 1 minutes!!／
Summary
How did you like it?
At LAND-FX, not all products can be traded with 500x 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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