Leverage 1:1000, features of use and brokers providing it
Exchange trading on Forex has become popular primarily because of the ability to use broker leverage.
It was leverage that made trading more accessible and reduced collateral requirements when opening transactions, thereby allowing even small investors to enter the market.
Every year the amount of leverage provided is only growing, and if previously it was difficult to find a broker with a leverage of more than 1:100, now quite a few brokers provide leverage of 1:1000 or more.
In stock trading, the size of 1:1000 is used for pipsing on M1, but in addition to the strategy itself, there are many other features.
First of all, not all brokerage companies provide leverage of 1:1000, and if they do, it is only on separate accounts:
| Brokerage company name | Maximum size |
Minimum deposit from US dollars |
Account name |
|
Broker ALPARI |
1:1000 1:3000 |
20 300 |
standard.mt4 and mt5 ecn.mt4, ecn.mt5, |
|
Broker AMARKETS |
1:1000 1:3000 |
100 100 |
FIXED STANDARD |
|
Broker ROBOFOREX |
1:2000 1:2000 |
10 10 |
ProCent |
|
Broker NPBFX |
1:2000 |
10 |
Master |
It is most difficult to find a broker with high leverage if you want to trade on an ECN account , but there are such companies. The size of the minimum deposit required to open it depends on the type of account.
Another important point is the asset you plan to trade; the maximum leverage is provided for their currency pairs and will have to be used for short-term trading.
For other assets, on the same account, the leverage can be significantly less, for example, for cryptocurrencies 1:50, futures 1:100, and for securities 1:25.
When using a leverage of 1:1000, it is implied that the collateral amount for the transaction will be 0.001%, that is, in order to open a transaction with a volume of 1 lot (100,000) euros at a price of 1.1 dollars per euro, you will need:
110,000 x 0.001 = $110
In this case, one point in a five-digit quote will be equal to 1 dollar, and a change in price by 110 points will lead to a complete loss of the deposit.
For this reason, trading with a leverage of 1:1000 is associated with high risk and is only possible on the shortest time periods.
What is the point of using such a large shoulder size? In my opinion, no, besides the fact that such trading is spontaneous in nature and the choice of trading accounts is limited, a leverage of 1:500 is quite sufficient for pipsing.