How to increase or decrease your broker's leverage
Leverage is the primary tool for significantly increasing forex trading volumes.
Its size plays a crucial role in many trading strategies. It also determines the risk level and characterizes the ratio of the open position to the trader's equity.
Many traders choose the maximum available leverage when opening an account and then adjust this ratio themselves.
However, others prefer the leverage to be immediately aligned with their chosen strategy. But what if this parameter was already selected when opening an account?
There are several ways to change leverage in your trader's account:
To change it, simply select the account on which you want to change the leverage and go to the “Account” menu, then the “Change leverage” tab:
Then we simply select the size we need, in my case you can choose from 1:1 to 1:2000:
Everything depends on the account type you're trading on. Once selected and confirmed, the leverage amount changes instantly.
Open a new account – If your broker doesn't offer the option described above and you don't want to change brokers, you can open a new account.
Almost all brokerages offer this option, and during the account opening process, you set the desired leverage amount .
The entire process of changing leverage takes minimal time. Once the account is opened, simply transfer the funds from the old account to the new one, and you're done.
When might you need to change the leverage amount?
Primarily, if you've decided to increase your leverage, for example, by using scalping .
Brokers also frequently improve their trading conditions. Not long ago, the maximum available leverage for cryptocurrencies rarely exceeded 1:5, but now it can reach up to 1:50. Why not take advantage of these new opportunities?
In the second case, you want to control the size of your trades. For example, you could set leverage to 1:10. Now, if you try to open a larger trade in the trading platform, you'll be rejected due to insufficient funds.
This means your trades will now be no larger than 10 times your account balance, regardless of the asset you're trading.
