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Upcoming changes to leverage for Indices and Oil products

February 17, 2025 |
　　　

We would like to inform you about an upcoming adjustment to the leverage settings for our Indices and Oil products. Effective March 9, 2025, the following changes will be implemented:

  • Leverage Mode: Indices and Oil will transition to a fixed leverage mode.
  • Maximum Leverage: The maximum leverage will be reduced from 1:1000 to 1:500.

 What This Means for You:

  • Your existing open positions will be adjusted to the new fixed leverage rates.
  • If you currently trade with 1:1000 leverage, you might face margin calls or stop-outs if your account balance is insufficient. Please ensure you have adequate margin or close open trades on affected products before the change date.
  • If you currently trade with lower leverage, you will experience an increase in leverage, which could lead to a higher potential loss in the event of a stop-out.

 Here’s an example to Illustrate the Impact:

  • Before Adjustment (1:1000 Leverage):
    • For a position valued at 100,000 USD, the margin requirement would be: 100,000 / 1000 = 100 USD
    • Margin maintenance (1:500) would be: 100 x 50% = 50 USD
  • After Adjustment (1:500 Leverage):
    • The margin requirement for the same position would increase to: 100,000 / 500 = 200 USD
    • Margin maintenance would then be: 200 x 50% = 100 USD
  • Clients with Lower Leverage Settings:
    • Clients who trade with lower leverage will experience an increase in leverage, which may result in higher potential losses in the event of a stop-out.

Example:

Before Adjustment (1:100 Leverage):

For a 10,000 USD deposit and a 100,000 USD position, the maximum loss at a 50% stop-out is 9,500 USD.

After Adjustment (1:500 Leverage):

The maximum potential loss increases to 9,900 USD.

This example demonstrates that due to the reduced leverage, you will require a higher margin to maintain your positions.

For more details on how these changes might affect your trading account, please contact [email protected].