IMPORTANT NOTE: The Standard FX Account is subject to equity-based Leverage. For more information, please click here EQUITY-BASED LEVERAGE.
Dynamic leverage is a mechanism that dynamically reduces the amount of leverage required in real time to protect your account from excessive exposure.
It is considered a risk management tool that is used to balance the risk appetite of traders by allowing them to maximize their trading potential, taking into consideration the market risks that they are exposed to, particularly when trading larger volumes.
At Compatible Trading, the maximum leverage offered is up to 1:1000. This offers traders the possibility to trade large contract sizes with a fraction of required margin.
i.e. for 1 lot of USDJPY with a contract size of 100,000, a margin of USD 100 is required.
The larger the volume traded, the lower the leverage hence the higher the margin. The higher the leverage, the more profit can be achieved, but in the same way, trading risk also increases. This is where dynamic leverage comes in.
The way it works is that it automatically adjusts the level of leverage based on different volume tiers. These tiers vary depending on the type of instrument and the risk profile associated with each asset class.
A sophisticated dynamic leverage mechanism is something that every trader should look for in their broker. The Dynamic tier levels that are applicable for each asset class are available here below:
It is considered a risk management tool that is used to balance the risk appetite of traders by allowing them to maximize their trading potential, taking into consideration the market risks that they are exposed to, particularly when trading larger volumes.
At Compatible Trading, the maximum leverage offered is up to 1:1000. This offers traders the possibility to trade large contract sizes with a fraction of required margin.
i.e. for 1 lot of USDJPY with a contract size of 100,000, a margin of USD 100 is required.
The larger the volume traded, the lower the leverage hence the higher the margin. The higher the leverage, the more profit can be achieved, but in the same way, trading risk also increases. This is where dynamic leverage comes in.
The way it works is that it automatically adjusts the level of leverage based on different volume tiers. These tiers vary depending on the type of instrument and the risk profile associated with each asset class.
A sophisticated dynamic leverage mechanism is something that every trader should look for in their broker. The Dynamic tier levels that are applicable for each asset class are available here below:
Forex Major Pairs
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
Forex Minors Pairs
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
Forex Exotic Pairs
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage* | Margin % | Max Limit per Symbol (USD) |
|---|
*Note: Revised leverage from 1:500 to 1:50 on USDTRY, EURTRY, TRYJPY pairs.
BTC | LTC | ETH | BCH | XRP
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
ADA | DOT | XLM
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
Precious Metals
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
Energies
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
Equity Indices
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
GTi12
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage | Margin % | Max Limit per Symbol (USD) |
|---|
Stocks
Margin Requirements / Leverage
| Tiers | Volume (USD) | Leverage* | Margin % | Max Limit per Symbol (USD) |
|---|
*Note: Stocks Leverage between 21:59 - 22:59 (GMT+3) is 1:10.
GT IO Markets (Pty) Ltd (https://ct/za/en/home) is a registered company in South Africa, with Registration Number 2015 / 059344 / 07 and has its registered address at Aurora Drive, Liberty Life Building 21, Office 125, 1st Floor Umhlanga, Kwa-Zulu Natal South Africa, 4301. GT IO Markets (Pty) Ltd is regulated by the Financial Sector Conduct Authority under the FSCA FSP Number 48896. GT IO Markets (Pty) Ltd acts as the intermediary between the investor and the liquidity provider, the counterparty to the contract for difference purchased by the investor via GT IO Markets (Pty) Ltd.
360 Degrees Markets Ltd (https://ct/en/home) is a registered company in Seychelles, with Registration Number 8421720-1. Its registered address is Suite 3, Global Village, Jivan’s Complex, Mont Fleuri, Mahe, Seychelles. 360 Degrees Markets Ltd is regulated by The Seychelles Financial Services Authority (FSA) under the Securities Dealer's License Number SD019.
Compatible Trading does not provide its services to citizens and residents of certain jurisdictions such as United States of America, Canada, EU countries, Iran, North Korea, and Belize.
Since Compatible Trading is not under the supervision of ESMA, it is not involved with any acts considered to be offering financial products and solicitation for financial services to the European Union countries and this website is not aimed at residents in the European Union countries.
Risk Disclaimer: CFDs are complex instruments and carry a high level of risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether trading is appropriate for you. You should not invest money that you cannot afford to lose. Leveraged products may not be suitable for everyone and may result in loss of all your capital. Read full Risk Disclosure here.
360 Degrees Markets Ltd (https://ct/en/home) is a registered company in Seychelles, with Registration Number 8421720-1. Its registered address is Suite 3, Global Village, Jivan’s Complex, Mont Fleuri, Mahe, Seychelles. 360 Degrees Markets Ltd is regulated by The Seychelles Financial Services Authority (FSA) under the Securities Dealer's License Number SD019.
Compatible Trading does not provide its services to citizens and residents of certain jurisdictions such as United States of America, Canada, EU countries, Iran, North Korea, and Belize.
Since Compatible Trading is not under the supervision of ESMA, it is not involved with any acts considered to be offering financial products and solicitation for financial services to the European Union countries and this website is not aimed at residents in the European Union countries.
Risk Disclaimer: CFDs are complex instruments and carry a high level of risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether trading is appropriate for you. You should not invest money that you cannot afford to lose. Leveraged products may not be suitable for everyone and may result in loss of all your capital. Read full Risk Disclosure here.