FAQ
Dynamic Leverage
Dynamic leverage adjusts in real-time based on the size of your open positions. The maximum leverage available is 1:1000, depending on the instrument and position size.
On the MT5 platform, if you select a lower leverage than the maximum (1:1000), then the margin requirements will increase proportionally.
For example:
If your leverage is set to 1:500, the margin requirements will be doubled compared to those with 1:1000 leverage.
If your leverage is set to 1:100, the margin requirements will increase ten times compared to those with 1:1000 leverage.
These adjustments help keep your risk management consistent, no matter what leverage you choose.
Examples based on 1:500 account leverage:
For instruments with dynamic leverage:
If you buy 2 contracts of XAUUSD, then your required margin will be calculated as follows:
1 100 2355 / 500 + 1 100 2355 / 250 = $471 + $942 = $1,413
For instruments with static leverage:
If you buy 1 contract of XAGUSD, then your required margin will be calculated as follows:
1 5000 30 / 62.5 = $2,400
Note: The examples above apply to the MT5, Tickmill Trader and TradingView platforms.
Dynamic leverage scales according to the size of your open position, affecting the margin you have in your account. Margin requirement represents the funds you need to open and maintain your positions. The information below shows dynamic leverage adjustments and margin requirements.
For Forex Majors & Crosses:
0–2 lots: 1:1000 max leverage (0.1% margin requirement)
2.01–200 lots: 1:500 max leverage (0.2% margin requirement)
200.01–400 lots: 1:100 max leverage (1.0% margin requirement)
400.01+ lots: 1:30 max leverage (3.3% margin requirement)
For Gold (XAUUSD, XAUEUR):
0–1 lot: 1:1000 max leverage (0.1% margin)
1.01–100 lots: 1:500 max leverage (0.2% margin)
100.01–200 lots: 1:100 max leverage (1.0% margin)
200.01+ lots: 1:30 max leverage (3.3% margin)
For Cryptocurrencies (BTCUSD, ETHUSD):
BTC: 0–3 lots / ETH: 0–70 lots: 1:200 max leverage (0.5% margin)
BTC: 3.01–10 / ETH: 70.01–250: 1:100 max leverage (1.0% margin)
BTC: 10.01–30 / ETH: 250.01–750: 1:50 max leverage (2.0% margin)
BTC: 30.01+ / ETH: 750.01+: 1:5 max leverage (20.0% margin)
Margin is calculated by applying the relevant margin percentage (based on your position size) to the notional value of your trade.
You can use the trading calculator to find out your required margin or check the example below.
Formula:
Margin = (Lots × Contract Size × Instrument Price) ÷ Leverage
Examples of trading XAUUSD (Gold) at a market price of $2,355 on a USD account:
1 lot (within 1:1000 tier):
(1 × 100 × 2,355) ÷ 1000 = $236 total margin requirement
2 lots (split across 1:1000 and 1:500 tiers):
1 lot at 1:1000: 1 x 100 x 2,355 ÷ 1000 = $236
1 lot at 1:500: 1 x 100 x 2,355 ÷ 500 = $471
Total margin requirement: $707
150 lots (split across three tiers):
1 lot at 1:1000: 1 x 100 x 2,355 ÷ 1000 = $236
99 lots at 1:500: 99 x 100 x 2,355 ÷ 500 = $46,629
50 lots at 1:100: 50 x 100 x 2,355 ÷ 100 = $117,750
Total margin requirement: $164,615
Note: The figures are rounded up to the nearest whole number.
Dynamic leverage applies to specific instruments, exclusively on the Tickmill Trader and MT5 platforms across all account types, including Demo.
Here's a list of instruments with dynamic leverage:
Forex: AUDUSD, EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, NZDUSD, AUDCAD, AUDCHF, AUDJPY, AUDNZD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD, EURSGD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, NZDCAD, NZDCHF, NZDJPY, NZDSGD, USDBRL, USDSGD
Commodities: XAUUSD, XAUEUR
Cryptocurrencies: BTCUSD, ETHUSD
When trading any of the instruments above on MT5, dynamic leverage will align with the MT5 account leverage you selected.
On the Tickmill Trader platform, dynamic leverage starts at 1:1000 for specific forex pairs and gold (XAUUSD, XAUEUR) and 1:200 for cryptocurrencies (BTHUSD, ETHUSD). It then adjusts automatically as your exposure changes.
Static leverage applies to all other instruments and the MT4 platform.
Dynamic leverage is a risk management tool that adjusts leverage in real time based on the size of your positions. Smaller positions have higher leverage (up to 1:1000), while larger positions have progressively lower leverage, reducing your exposure and risk. Make sure you understand how it works before using it.
Dynamic leverage promotes responsible trading by adjusting the leverage level according to the position size. It also encourages proper risk management, protecting your account from significant losses by avoiding overly large positions that could lead to a margin call.