Leverage in ActivTrades
Maximum Leverage Levels
How to Choose Leverage
Leverage Restrictions and Risks
Automatic Leverage Management
Using Leverage for Hedging
Leverage Training and Analytics
Analytical Tools Features
Leverage for Different Types of Instruments
Leverage Usage Fees
Leverage Regulation at ActivTrades
Common Issues
Company Reviews
FAQ
Maximum Leverage Levels
How to Choose Leverage
Leverage Restrictions and Risks
Automatic Leverage Management
Using Leverage for Hedging
Leverage Training and Analytics
Analytical Tools Features
Leverage for Different Types of Instruments
Leverage Usage Fees
Leverage Regulation at ActivTrades
Common Issues
Company Reviews
FAQ
Created: 10.08.2024
Leverage in ActivTrades: Available Levels and Features
Leverage is one of the key parameters to consider when choosing a broker and opening a trading account.
This section will reveal all the features of using leverage in ActivTrades.
This section will reveal all the features of using leverage in ActivTrades.
Maximum Leverage Levels
ActivTrades offers the following maximum leverage levels depending on the account type:
◉ Cent - 1:500
◉ Standard - 1:200
◉ Premium - 1:100
◉ VIP - 1:50
Leverage allows you to open larger positions compared to the size of your own deposit.
◉ Standard - 1:200
◉ Premium - 1:100
◉ VIP - 1:50
Leverage allows you to open larger positions compared to the size of your own deposit.
How to Choose Leverage
Leverage is chosen by the client when opening a new trade:
1
Open the trading terminal
2
Select the instrument/asset to trade
3
Set the desired leverage level in the order window
4
Submit a market or pending order
The leverage level can be changed at any time before closing the position.
Leverage Restrictions and Risks
It's important to understand that while high leverage can increase potential profits, it also increases risks:
Amplifies the negative impact of market fluctuations
Reduces deposit resilience to losses
Risk of margin calls and forced position closures Therefore, it is recommended to use moderate leverage levels that match your experience level.
Amplifies the negative impact of market fluctuations
Reduces deposit resilience to losses
Risk of margin calls and forced position closures Therefore, it is recommended to use moderate leverage levels that match your experience level.
Automatic Leverage Management
To enhance trading safety and risk control, ActivTrades offers automatic leverage management features:
- Maximum Leverage CapSet the maximum allowable leverage level
The system will automatically reduce leverage if it exceeds the set threshold - Leverage Tied to Free Margin LevelSet the desired free margin level in percentage
When the specified threshold is reached, leverage will be reduced - Fixed Leverage for All TradesChoose a single fixed leverage level
It will be applied to all new positions on the account These settings help protect traders from excessive leverage use.
Using Leverage for Hedging
In addition to increasing position sizes, leverage can be used for hedging risks in the following strategies:
- Opening Opposite PositionsHedge part of existing orders
Mitigate the impact of price fluctuations - Correlation ArbitrageUse leverage to open positions on different correlated assets
Profit from differences in price movements . Hedging with leverage requires increased caution due to the potential risk of margin calls.
Leverage Training and Analytics
To assist traders, ActivTrades offers the following educational materials on leverage:
◉ Live Webinar Series
◉ Video Library with Explanations
◉ Analytical PDF Guides for Download
The platform also offers specialized tools for calculating position sizes, margin requirements, and risk assessments.
◉ Live Webinar Series
◉ Video Library with Explanations
◉ Analytical PDF Guides for Download
The platform also offers specialized tools for calculating position sizes, margin requirements, and risk assessments.
Analytical Tools Features
Leverage for Different Types of Instruments
In addition to differences in maximum leverage for different account types, ActivTrades also has leverage limits for specific trading instruments:
Lower leverage levels are applied to more volatile assets to better control risks.
Leverage Usage Fees
There are no direct commissions or fees related to leverage use in ActivTrades. However, using higher leverage is associated with indirect costs:
◉ Swap - fee for rolling over a position to the next day
◉Increased Spread - widening spreads on larger volumes
◉Margin Call - possible fee for additional margin call
The higher the leverage used, the greater the costs for swaps, spreads, and the higher the risk of margin calls.
◉Increased Spread - widening spreads on larger volumes
◉Margin Call - possible fee for additional margin call
The higher the leverage used, the greater the costs for swaps, spreads, and the higher the risk of margin calls.
Leverage Regulation at ActivTrades
Leverage for ActivTrades clients is set in accordance with regulatory requirements:
◉ Cyprus (CySEC) - max 1:30 for retail traders
◉ United Kingdom (FCA) - max 1:25 for retail traders
◉Bahrain (CBB) - max 1:100 for all clients
◉ UAE (FSRA) - max 1:50 for all clients
Professional clients can access higher leverage levels after completing special certification. These limits are established to protect investors and reduce the risks of excessive leverage.
◉ Cyprus (CySEC) - max 1:30 for retail traders
◉ United Kingdom (FCA) - max 1:25 for retail traders
◉Bahrain (CBB) - max 1:100 for all clients
◉ UAE (FSRA) - max 1:50 for all clients
Professional clients can access higher leverage levels after completing special certification. These limits are established to protect investors and reduce the risks of excessive leverage.
Common Issues
Based on trader feedback, here are the most common issues when trading with leverage:
Most issues can be resolved by timely monitoring of the margin status on the account.
Company Reviews
Feedback source www.trustpilot.com
Leverage FAQ
What does 1:200 leverage mean?
It is the ratio between the position size and the required margin. With 1:200 leverage, you need $1000 in your account to open a $200,000 position.
Can leverage be changed after entering a trade?
Yes, ActivTrades allows leverage to be changed even after opening a position.
Why do higher-tier accounts have leverage restrictions?
This is to manage risks and protect larger deposits.
Leverage is a crucial parameter that enhances the flexibility and profitability of trading strategies but requires strict risk control. We hope this guide helps you understand the features of using leverage at ActivTrades.