This is an explanatory article on leverage at AXIORY.
AXIORY has always been very popular because of its low fees, but since AXIORY recently started offering CFDs on US stocks, AXIORY has been increasing the number of their accounts.
The maximum leverage offered by AXIORY is 777x.
In this article, I will explain what leverage is for beginners, the maximum leverage and leverage limits of AXIORY, and how to manage risk with less risk.
- What is the leverage?
- What is the maximum leverage of AXIORY?
- Leverage limits of AXIORY
- How to change leverage settings
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 ÷ 400 = 300 USD
100,000 EUR × 1.200 ÷ 777= 154 USD
Thus, if you take advantage of AXIORY maximum 777x leverage, you can trade 100,000 Euros for only $154.
Trading leverage at AXIORY
The maximum leverage of AXIORY is 777x, actually not all products can be traded at 777x at any given time.
Depends on account type
AXIORY offers four different account types.
Among these, the MAX account type has a maximum leverage of 777x.
All other account types are 400x.
Account Type | Max Leverage |
---|---|
NANO | 1:400 |
STANDARD | 1:400 |
MAX | 1:777 |
TERA | 1:400 |
Restricted by account balance
The maximum leverage of AXIORY depends on your account balance.
Up to $100,000 account balance, you can trade with 400 times leverage.
After $100,000, the leverage increases to 300x up to $200,000.
Above $200,000, the leverage is automatically limited to 200x.
However, $100,000 is a fairly large margin amount, so this should not be a problem for the average trader.
Account Balance | Maxx Leverage |
---|---|
$0 ~ $100,000 | 1:400 |
$100,001 ~ $200,000 | 1:300 |
$200,001 ~ | 1:200 |
Depends on the trading instrument
At AXIORY, you can trade a variety of instruments as well as currency pairs.
Only currency pairs can be traded with 400x leverage at AXIORY.
Other products have a lower leverage.
Products | Max Leverage |
---|---|
Currency Pair | 1:400 |
Stock Index | 1:50~1:100 |
Energyー | 1:20 |
Metal | 1:20~1:100 |
Stocks | 1: |
All of AXIORY products and the maximum leverage that can be traded with each of them are explained in detail in the separate article “AXIORY 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 1000 times leverage, you can reduce the risk to one tenth by using 100 times leverage.
How to Change Leverage at AXIORY
The leverage of AXIORY 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 AXIORY by following the steps below.
Login to MyAxiory
Login to MyAxiory from the top page of AXIORY official website.
Target Account
Select target account, then select ‘More actions’ -> ‘Change leverage’.
Set New Leverage
Select the new leverage you want to set and click Save.
In this example, let’s change the leverage from 400x to 25x.
Leverage has been changed
The leverage change will take effect shortly.
For more information on how to create an additional account at AXIORY and how to operate with less risk by utilizing multiple accounts, please refer to the separate article “How to Open AXIORY Additional Account | How to Reduce Risks“.
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Summary
How did you like it?
At AXIORY, not all products can be traded with 777x 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.
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