Leverage Calculator

What Is Leverage in Trading?

Leverage allows traders to control large positions with a small amount of capital.

Example:

• Account Balance: $1,000
• Leverage: 1:100
• Position Size: $100,000

Leverage vs. Margin:

• Leverage: Multiplier (e.g., 1:50, 1:100).
• Margin: Required deposit (e.g., 2% for 1:50).

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Why Use a Leverage Calculator?

1. Prevents Margin Calls

• Ensures you don’t exceed broker margin requirements.

2. Optimizes Risk per Trade

• Keeps losses manageable (1–2% of account).

3. Compares Broker Leverage Offers

• Some brokers offer 1:30 (EU) vs. 1:500 (offshore).

4. Works for All Markets

• Forex, crypto, stocks, and commodities.

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How to Calculate Leverage Manually

Formula:

Leverage=Position SizeAccount BalanceLeverage=Account BalancePosition Size​

Example:

• Position Size: $50,000
• Account Balance: $1,000
• Leverage = 50,000 / 1,000 = 1:50

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Safe Leverage Guidelines by Market

Market	Recommended Max Leverage	Reason
Forex (Majors)	1:30–1:100	Stable, liquid
Forex (Exotics)	1:10–1:30	High volatility
Crypto	1:2–1:10	Extreme volatility
Stocks	1:5–1:20	Gap risk
Commodities	1:20–1:50	News-driven moves

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5 Pro Tips to Avoid Over-Leveraging

1. Follow the 1% Rule – Never risk >1% of account per trade.
2. Use Stop-Losses Religiously – Prevents margin calls.
3. Lower Leverage in Volatile Markets – Crypto needs <1:10.
4. Monitor Margin Levels – Keep >100% to avoid liquidation.
5. Avoid “All-In” Trades – Even 100:1 leverage can wipe accounts fast.

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FAQs About Leverage

1. What’s the safest leverage for beginners?

• 1:10–1:30 (Forex), 1:2–1:5 (Crypto).

2. Can leverage be higher than 1:500?

Yes, but only with offshore brokers (high risk!).

3. Does leverage affect swap fees?

No, but larger positions = higher overnight costs.

4. Which brokers offer 1:1000 leverage?

RoboForex, Exness (offshore entities only).

5. Is low leverage always better?

Not always—moderate leverage (1:30–1:100) balances risk/reward.