What is Leverage?

When trading on the financial market you have the ability to use leverage. Leverage works like borrowed money, which means that you will have to deposit and use less of your money to open bigger volume positions.

At Headway you can choose from 1:1 leverage which means trading without leverage and all the way up to unlimited! Of course you can choose a comfortable leverage level in between.

For example if your account has the 1:500 leverage selected and you deposit $10 you will be able to trade as if your account balance is $5000.  

Unlimited leverage is not available when you first open an account. Unlimited leverage becomes available after trading 5 lots (500 cent lots).

The available leverage also depends on the account equity. Equity represents the current value of your trading account. It changes while you have open orders that are gaining profit or losses. If you do not have any open positions, then your Equity is the same as your Balance.

The Company reserves the right to change the leverage on the Client’s account any time with or without prior notification, based on the leverage limit depending on the sum of equity according to the terms and conditions below.

Remember that a higher leverage provides an opportunity to earn much higher profits but likewise increases your risks. Check out this article on Margin.

Here is an article on How to Change your Leverage. 

Take note: unlimited leverage is not available for the following trading instruments: cryptocurrencies, energies, stocks and indices.