OneRoyal, Author at OneRoyal Academy

How Does Dynamic Leverage Work?

Leverage Information OneRoyal uses dynamic leverage for various financial instruments (FX majors, FX minors, metals, indices, oil) to maximise your trading potential. * Dynamic Leverage does not apply to CFDs on Crypto, Shares, and Exchange-Traded Funds (ETFs). FX Majors: 1:1,000 FX Minors: 1:500 Metals: 1:500 Indices: 1:200 Oil: 1:100 Dynamic Leverage Dynamic leverage model allows for the leverage to adapt based on your trading positions. Dynamic leverage is applied on a per instrument basis, where the leverage will automatically decrease as your trading volume increases. This allows traders to maximise their trading potential while ensuring responsible risk management strategies remain in place. For example, if you trade 5 lots on EURUSD and 5 lots on GBPUSD, then the leverage for both positions will remain at 1:1000. If however, you trade 10 lots on EURUSD, then the first 5 lots will be calculated with a leverage of 1:1000 while the remaining 5 lots will be calculated with a leverage of 1:500. Forex Margin Requirements Lots Margin Requirement Maximum Leverage 0 – 5 0.1% 1:1,000 5 – 50 0.2% 1:500 50 – 100 0.5% 1:200 100 – 200 1% 1:100 200-300 2% 1:50 300 – 500 5% 1:20 500 – 1,000 10% 1:10 Example 1 Example 2 Example 3 Client Account Leverage – 1:1000 Consider a USD account with 3 lots on USDJPY (either Buy or Sell) FX Example 1 Lots Applicable Margin Margin Calculation Required Margin 3 0.1% 3 (Lots) * 100,000 / 1000 (leverage) 300 USD 3 Margin Requirement in Account Currency 300 USD Client Account Leverage – 1:1000 Consider a USD account with 150 lots on USDJPY (either Buy or Sell). FX Example 2 Lots Applicable Margin Margin Calculation Required Margin 5 0.1% 5 (Lots) * 100,000 / 1000 (leverage) 500 USD 45 0.2% 45 (Lots) * 100,000 / 500 (leverage) 9,000 USD 50 0.5% 50 (Lots) * 100,000 / 200 (leverage) 25,000 USD 50 1% 50 (Lots) * 100,000 / 100 (leverage) 50,000 USD 150 Margin Requirement in Account Currency 84,500 USD Client Account Leverage – 1:1000 Consider a USD account with 500 lots on USDJPY (either Buy or Sell). FX Example 3 Lots Applicable Margin Margin Calculation Required Margin 5 0.1% 5 (Lots) * 100,000 / 1000 (leverage) 500 USD 45 0.2% 45 (Lots) * 100,000 / 500 (leverage) 9,000 USD 50 0.5% 50 (Lots) * 100,000 / 200 (leverage) 25,000 USD 100 1% 100 (Lots) * 100,000 / 100 (leverage) 100,000 USD 100 2% 100 (Lots) * 100,000 / 50 (leverage) 200,000 USD 200 5% 200 (Lots) * 100,000 / 20 (leverage) 1,000,000 USD 500 Margin Requirement in Account Currency 1,334,500 USD Metals Margin Requirements Lots Margin Requirement Maximum Leverage 0 – 5 0.2% 1:500 5 – 20 0.5% 1:200 20 – 100 1% 1:100 100 – 200 2% 1:50 200 – 400 5% 1:20 400 – 500 10% 1:10 Example 1 Example 2 Example 3 Client Account Leverage – 1:1000 Consider a USD account with 3 lots on GOLD (either Buy or Sell) Metals Example 1 Lots Applicable Margin Margin Calculation Required Margin 3 0.2% 3 (Lots) * 100 oz * 1,800 (Price) / 500 (leverage) 1,080 USD 3 Margin Requirement in Account Currency 1,080 USD Client Account Leverage – 1:1000 Consider a USD account with 15 lots on SILVER (either Buy or Sell). Metals Example 2 Lots Applicable Margin Margin Calculation Required Margin 5 0.2% 5 (Lots) * 5,000 oz * 25.150 (Price) / 500 (leverage) 1,258 USD 10 0.5% 10 (Lots) * 5,000 oz * 25.150 (Price) / 200 (leverage) 6,288 USD 15 Margin Requirement in Account Currency 7,545 USD Client Account Leverage – 1:1000 Consider a USD account with 103 lots on GOLD (either Buy or Sell). Metals Example 3 Lots Applicable Margin Margin Calculation Required Margin 5 0.2% 5 (Lots) * 100 oz * 1,800 (Price) / 500 (leverage) 1,800 USD 10 0.5% 10 (Lots) * 100 oz * 1,800 (Price) / 200 (leverage) 13,500 USD 80 1% 80 (Lots) * 100 oz * 1,800 (Price) / 100 (leverage) 144,000 USD 3 2% 3 (Lots) * 100 oz * 1,800 (Price) / 50 (leverage) 10,800 USD 103 Margin Requirement in Account Currency 170,100 USD Cash Indices Margin Requirements Lots Margin Requirement Maximum Leverage 0 – 200 0.5% 1:200 200 – 200 1% 1:100 500 – 1,500 2% 1:50 1,500 – 2,000 3% 1:33 2,000 – 2,500 5% 1:20 2,500 – 3,000 10% 1:10 Example 1 Example 2 Example 3 Client Account Leverage – 1:1000 Consider a USD account with 100 lots on US30 at the price of 34,500 (either Buy or Sell) Indices Example 1 Lots Applicable Margin Margin Calculation Required Margin 100 0.5% 100 (Lots) * 34,500 (Price) / 200 (leverage) 17,250 USD 100 Margin Requirement in Account Currency 17,250 USD Client Account Leverage – 1:1000 Consider a USD account with 25 lots on DE40 at the price of 14,000 (either Buy or Sell). Indices Example 2 Lots Applicable Margin Margin Calculation Required Margin 25 0.5% 25 (Lots) * 14,000 (Price) / 200 (leverage)*1.08 (EURUSD) 1,890 USD 25 Margin Requirement in Account Currency 1,890 USD Client Account Leverage – 1:1000 Consider a USD account with 1,500 lots on US30 at the price of 34,000 (either Buy or Sell). Indices Example 3 Lots Applicable Margin Margin Calculation Required Margin 200 0.50% 200 (Lots) * 34,000 (Price) / 200 (leverage) 34,000 USD 300 1% 300 (Lots) * 34,000 (Price) / 100 (leverage) 102,000 USD 1,000 2% 1,000 (Lots) * 34,000 (Price) / 50 (leverage) 680,000 USD 1,500 Margin Requirement in Account Currency 816,000 USD Future Indices Margin Requirements Lots Margin Requirement Maximum Leverage 0 – 20 0.5% 1:200 20 – 50 1% 1:100 50 – 150 2% 1:50 150 – 200 3% 1:33 200 – 250 5% 1:20 250 – 300 10% 1:10 Example 1 Example 2 Example 3 Client Account Leverage – 1:1000 Consider a USD account with 10 lots on US30 at the price of 34,500 (either Buy or Sell) Futures Example 1 Lots Applicable Margin Margin Calculation Required Margin 10 0.5% 10 (Lots) * 10 * 34,500 (Price) / 200 (leverage) 17,250 USD 10 Margin Requirement in Account Currency 17,250 USD Client Account Leverage – 1:1000 Consider a USD account with 1 lot on DE40 at the price of 14,000 (either Buy or Sell). Futures Example 2 Lots Applicable Margin Margin Calculation Required Margin 1 0.5% 1 (Lots) * 25 * 14,000 (Price) / 200 (leverage)*1.08 (EURUSD) 1,890 USD 1 Margin Requirement in Account Currency 1,890 USD Client Account Leverage – 1:1000 Consider a USD account with 150 lots on US30 at the price of 34,000 (either Buy or Sell). Futures Example 3 Lots Applicable Margin Margin Calculation Required Margin 20 0.50% 20 (Lots) * 10 * 34,000 (Price) / 200 (leverage) 34,000 USD 30 1% 30 (Lots) * 10 * 34,000 (Price) / 100 (leverage) 102,000 USD 100 2% 100 (Lots) * 10 * 34,000 (Price) / 50 (leverage) 680,000 USD 150 Margin Requirement in Account Currency 816,000

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