What leverage is
Leverage lets you hold a position worth many times the margin you deposit. The higher the ratio, the less margin a given position requires.
Working out the margin
Required margin is position size divided by leverage. Buying one lot of USDJPY (100,000 units) at 150.00 is a position of 15,000,000 JPY. At 1000:1 the margin is 15,000 JPY; at 100:1 it is 150,000 JPY.
The ratio does not change your P&L
A common misreading. One lot of USDJPY moves 1,000 JPY per pip whatever your leverage. What the ratio changes is only the margin needed to open the position.
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leverage
Ten times the ratio, one tenth the margin.
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leverage
One lot of USDJPY moves 1,000 JPY per pip, at either ratio.
Only the margin changes. At the same lot size, one pip is worth the same whatever the ratio.
What it does change
The lot size your capital allows. With 100,000 JPY of margin, 100:1 permits about 0.66 lots and 1000:1 about 6.6 lots. Ten times the lot size means ten times the P&L on the same move. Risk comes from the size you take, not from the ratio itself.
Our ratios and stop-out
FX pairs are up to 1000:1 on STANDARD and micro accounts, and 500:1 on PRO. A stop-out is executed when the margin level falls below 30%. If a balance still goes negative, zero cut covers it.
This page explains our trading conditions. It is not a recommendation to trade or to use any particular leverage. Margin trading carries the risk of losing your invested capital.
Getting started is simple
Opening an account is free and the application is completed online in 3 to 5 minutes.
Foreign exchange trading carries the risk of losing your invested capital, and higher leverage increases that risk. Please consider the risks carefully and trade only within a range of loss you can bear.
Past performance neither indicates nor guarantees future results.
This website is not directed at residents of Japan. AXIA PHOENIX FINE PROJECT does not provide services to residents of certain jurisdictions, including the United States, Afghanistan, Belarus, Burma, the Central African Republic, Congo, Cuba, Egypt, Guinea, Iraq, Iran, Lebanon, Libya, Mauritius, North Korea, Pakistan, Somalia, Sudan, Syria, Venezuela, Yemen and Zimbabwe.