What is Lot-based Dynamic leverage?
Lot-based dynamic leverage or dynamic leverage based on lots is a dynamic leverage model that automatically adapts to the number of lots of the open positions on your trading account. As the number of lots per Instrument increases the leverage decreases accordingly.
Lot-based Dynamic leverage with XSTrades
XSTrades offers lot-based dynamic leverage up to 1:2000 on eligible MT4 accounts, where the leverage level automatically adapts to the number of lots of the open positions on your trading account. As the number of lots per instrument increases the leverage decreases accordingly.
This dynamic leverage works on the net number of lots per trading instrument. As such, if a client has open positions across multiple instruments the leverage will be calculated separately on each symbol. Also if the client has partially hedged positions on a specific trading instrument, the leverage will be determined based on the net number of lots.
This model is available on the MT4 platform only, for eligible countries. MT5 accounts use equity-based dynamic leverage.
All MT4 account types that have “LT” at the end of the account type name have dynamic leverage based on lots: Standard LT, Pro LT and Elite LT.
| Asset Class | Maximum Leverage |
|---|---|
| FX Majors | 1:2000 |
| FX Minors | 1:500 |
| FX Exotics | 1:200 |
| Gold | 1:2000 |
| Silver | 1:200 |
| Platinum & Palladium | 1:100 |
| Crude Oil | 1:500 |
| NGAS | 1:10 |
| Major Indices | 1:500 |
| Minor Indices | 1:100 |
| CNA50, HK50, USDXY | 1:50 |
| BTC & ETH | 1:500 |
| Rest Crypto | 1:20 |
- Maximum Leverage 1:2000
- Maximum Leverage 1:500
- Maximum Leverage 1:200
- Maximum Leverage 1:2000
- Maximum Leverage 1:200
- Maximum Leverage 1:100
- Maximum Leverage 1:500
- Maximum Leverage 1:10
- Maximum Leverage 1:500
- Maximum Leverage 1:100
- Maximum Leverage 1:50
- Maximum Leverage 1:500
- Maximum Leverage 1:20
| Lots | Margin | Maximum Leverage |
|---|---|---|
| 0-2 | 0.2% | 1:500 |
| 2-10 | 0.5% | 1:200 |
| 10-20 | 2% | 1:50 |
| 20-30 | 4% | 1:25 |
| 30-40 | 10% | 1:10 |
| 40+ | 20% | 1:5 |
- Margin 0.2%
- Maximum Leverage 1:500
- Margin 0.5%
- Maximum Leverage 1:200
- Margin 2%
- Maximum Leverage 1:50
- Margin 4%
- Maximum Leverage 1:25
- Margin 10%
- Maximum Leverage 1:10
- Margin 20%
- Maximum Leverage 1:5
Consider a USD account with leverage 1:2000, and 2 lots of BTCUSD (Buy or Sell).
Consider BTCUSD: 40,000.00 USD
| Lots | Applicable Leverage | Applicable Margin Requirement | Margin Calculations | Margin Amount in Symbol Currency |
|---|---|---|---|---|
| 2 | 1:500 | 0.2% | 2 (Lots) * 1 * 40,000.00 / 500 (leverage) | 160.00 USD |
| Total Required Margin in Symbol Currency | 160.00 USD | |||
- Applicable Leverage 1:500
- Applicable Margin Requirement 0.2%
- Margin Calculations 2 (Lots) * 1 * 40,000.00 / 500 (leverage)
- Margin Amount in Symbol Currency 160.00 USD
Total Required Margin in Symbol Currency:160.00 USD
The account currency is the same as symbol currency, hence the conversion rate is 1.
| Total Required Margin in Symbol Currency | Conversion Rate (USD/USD) | Total Required Margin in Account Currency |
|---|---|---|
| 160.00 USD | 1 | 160.00 USD |
- Conversion Rate (USD/USD) 1
Consider a EUR account with leverage 1:2000, and 15 lots of BTCUSD (Buy or Sell).
Consider BTCUSD: 40,000.00 USD
| Lots | Applicable Leverage | Applicable Margin Requirement | Margin Calculations | Margin Amount in Symbol Currency |
|---|---|---|---|---|
| 2 | 1:500 | 0.2% | 2 (Lots) * 1 * 40,000.00 / 500 (leverage) | 160.00 USD |
| 8 | 1:200 | 0.5% | 8 (Lots) * 1 * 40,000.00 / 200 (leverage) | 1,600.00 USD |
| 5 | 1:50 | 2% | 5 (Lots) * 1 * 40,000.00 / 50 (leverage) | 4,000.00 USD |
| Total Required Margin in Symbol Currency | 5,760.00 USD | |||
- Applicable Leverage 1:500
- Applicable Margin Requirement 0.2%
- Margin Calculations 2 (Lots) * 1 * 40,000.00 / 500 (leverage)
- Margin Amount in Symbol Currency 160.00 USD
- Applicable Leverage 1:200
- Applicable Margin Requirement 0.5%
- Margin Calculations 8 (Lots) * 1 * 40,000.00 / 200 (leverage)
- Margin Amount in Symbol Currency 1,600.00 USD
- Applicable Leverage 1:50
- Applicable Margin Requirement 2%
- Margin Calculations 5 (Lots) * 1 * 40,000.00 / 50 (leverage)
- Margin Amount in Symbol Currency 4,000.00 USD
Total Required Margin in Symbol Currency:5,760.00 USD
Consider EUR/USD rate at 1.1000
| Total Required Margin in Symbol Currency | Conversion Rate (USD/EUR) | Total Required Margin in Account Currency |
|---|---|---|
| 5,760.00 USD | 0.91 | 5,241.60 EUR |
- Conversion Rate (USD/EUR) 0.91
- Total Required Margin in Account Currency 5,241.60 EUR
Consider a JPY account with leverage 1:2000, and 45 lots of BTCUSD (Buy or Sell).
Consider BTCUSD: 40,000.00 USD
| Lots | Applicable Leverage | Applicable Margin Requirement | Margin Calculations | Margin Amount in Symbol Currency |
|---|---|---|---|---|
| 2 | 1:500 | 0.2% | 2 (Lots) * 1 * 40,000.00 / 500 (leverage) | 160.00 USD |
| 8 | 1:200 | 0.5% | 8 (Lots) * 1 * 40,000.00 / 200 (leverage) | 1,600.00 USD |
| 10 | 1:50 | 2% | 10 (Lots) * 1 * 40,000.00 / 50 (leverage) | 8,000.00 USD |
| 10 | 1:25 | 4% | 10 (Lots) * 1 * 40,000.00 / 25 (leverage) | 16,000.00 USD |
| 10 | 1:10 | 10% | 10 (Lots) * 1 * 40,000.00 / 10 (leverage) | 40,000.00 USD |
| 5 | 1:5 | 20% | 5 (Lots) * 1 * 40,000.00 / 5 (leverage) | 40,000.00 USD |
| Total Required Margin in Symbol Currency | 105,760 USD | |||
- Applicable Leverage 1:500
- Applicable Margin Requirement 0.2%
- Margin Calculations 2 (Lots) * 1 * 40,000.00 / 500 (leverage)
- Margin Amount in Symbol Currency 160.00 USD
- Applicable Leverage 1:200
- Applicable Margin Requirement 0.5%
- Margin Calculations 8 (Lots) * 1 * 40,000.00 / 200 (leverage)
- Margin Amount in Symbol Currency 1,600.00 USD
- Applicable Leverage 1:50
- Applicable Margin Requirement 2%
- Margin Calculations 10 (Lots) * 1 * 40,000.00 / 50 (leverage)
- Margin Amount in Symbol Currency 8,000.00 USD
- Applicable Leverage 1:25
- Applicable Margin Requirement 4%
- Margin Calculations 10 (Lots) * 1 * 40,000.00 / 25 (leverage)
- Margin Amount in Symbol Currency 16,000.00 USD
- Applicable Leverage 1:10
- Applicable Margin Requirement 10%
- Margin Calculations 10 (Lots) * 1 * 40,000.00 / 10 (leverage)
- Margin Amount in Symbol Currency 40,000.00 USD
- Applicable Leverage 1:5
- Applicable Margin Requirement 20%
- Margin Calculations 5 (Lots) * 1 * 40,000.00 / 5 (leverage)
- Margin Amount in Symbol Currency 40,000.00 USD
Total Required Margin in Symbol Currency:105,760 USD
Consider USD/JPY rate at 150.00
| Total Required Margin in Symbol Currency | Conversion Rate (USD/JPY) | Total Required Margin in Account Currency |
|---|---|---|
| 105,760 USD | 150.00 | 15,864,000.00 JPY |
- Conversion Rate (USD/JPY) 150.00
- Total Required Margin in Account Currency 15,864,000.00 JPY
Dynamic Leverage does not apply to some asset classes or account types. For more details please check our contact specifications page.
Higher Margin Requirements (HMR) Periods
We apply risk management measures to protect positions from possible high volatility during key events and specific time periods which impact the general volatility of the market.
Higher amounts of margin are required to open an order during these periods which are known as HMR (higher margin requirements) periods.
The HMR periods include:
• 15 minutes before major economic news releases until 5 minutes after the announcement.
• 1 hour before the market closes on Friday.
• 1 hour after each instrument begins trading on Monday, based on its respective market opening time.
• Before early market closures during market holidays, where applicable.
• 15 minutes before the daily trading break until 5 minutes after trading resumes, applicable to energies, gold (XAU) and silver (XAG) only.
The maximum leverage available for new positions opened during HMR periods is automatically limited to 1:200.
Please note that these requirements apply only to positions opened during HMR periods. The margin requirements of positions opened before the start of an HMR period will not be affected.
Closing an existing hedged position during an HMR period may fail if there is insufficient free margin to meet the applicable margin requirement, particularly for the remaining leg of the hedge after one side has been closed.
| Asset Class | HMR Leverage |
|---|---|
| FX Majors | 1:200 |
| Gold | 1:200 |
| FX Minors | 1:100 |
| Major Indices | 1:100 |
| Crude Oil | 1:50 |
| FX Exotics | 1:50 |
| Silver | 1:50 |
| BTC & ETH | 1:10 |
| Minor Indices | 1:10 |
| Platinum & Palladium | 1:10 |
- HMR Leverage 1:200
- HMR Leverage 1:200
- HMR Leverage 1:100
- HMR Leverage 1:100
- HMR Leverage 1:50
- HMR Leverage 1:50
- HMR Leverage 1:50
- HMR Leverage 1:10
- HMR Leverage 1:10
- HMR Leverage 1:10