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Leverage & Margin
Trade CFDs with Leverage Up to 1:1000 at KVB!
Traders enjoy tight spreads, fast execution, and cutting-edge platforms along with high leverage ratios, depending on their preferences. You can trade 100+ products with leverage up to 1:1000!
What is Leverage and How to Use It?
Leverage is a financial tool that enables traders to gain significantly more exposure in the market with a comparatively small amount of capital. Using leverage is essentially being able to control a larger amount of money by borrowing capital from a broker.
Trading with leverage in forex means you can amplify your profits if market movements are in your favor. But leverage is a two-way street, meaning you can also rapidly lose your capital if markets move against you. Because both profits and losses are subject to leverage.
Deposit (Margin)
Leverage Ratio
Example of Forex Trading with Leverage
Let's assume you have $1,000 in your wallet and you wish to use it in Forex markets. You opened a margin account to trade CFDs with a broker.
While you can enter the market with your $1,000 depending on your account type or the broker you work with, you may want to control more than that to make more profit.
Once you deposit -link to deposit & withdraw page- your $1,000, you can multiply it by using leverage. Now let's assume you chose 1:100 leverage. $1,000 x 100 = $100,000. You are now controlling 100 times more than your initial amount deposit.
The $1,000 you deposit to initiate a position is also known as margin.
What is Margin in Forex Trading?
Margin is the amount you deposit to open a position and use leverage. KVB requires a minimum of 0.1% margin, in other words, the maximum leverage ratio we offer is 1:1000!
Margin Requirement
The amount of money required to open a position.
Account Balance
The total amount in your trading account.
Often confused with the account balance, equity refers to your balance plus any profits or losses from open positions. If you don't have an open position, your account balance equals equity.
Usable Margin
The money in your account that you can use to open new positions.
Used Margin
The total amount that the broker has locked up to keep your positions open.
Margin Call
A notification you receive from your broker if your capital is depleted below the required margin level.
Trade with KVB, Choose Leverage up to 1:1000
KVB offers leverage up to 1:1000. It is crucial to have a strong grasp of the concept of leverage trading before using it in your trades.
If you feel confident and ready, it may be the time to open a live account now! Check our account types for maximum leverage options.
What is margin call in forex?
Used Margin > Equity = Margin Call
A margin call is a notification your broker sends when your margin level has dropped below a predetermined amount. It warns you about the risk of your positions being liquidated.
In order to keep your positions open, you may be required to deposit funds into your account upon receiving a margin call.
You can reduce the chance of margin calls by implementing risk management techniques as well as educating yourself on how markets work.
How is margin calculated in forex trading?
Margin calculation is typically based on the leverage ratio you choose and the size of the contract you wish to trade. Margin = Contract size / Leverage ratio.
What is leverage ratio?
Leverage ratio refers to the ratio between the borrowed capital and your own capital. It allows you to use more capital in your trades but also increases risk.
Are there limits on margin levels?
Yes, KVB sets minimum margin levels. If your account funds fall below this level, it may trigger a margin call to reduce risk.
What is the relationship between margin and losses?
Margin is closely related to losses. If your trades incur losses that exceed the margin in your account, you may face additional losses or even account liquidation.
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