How does floating leverage work?
However, floating leverage comes into play during the funded simulation account stage. The size of the leverage depends on the asset class, the volume, and several other parameters, as detailed in the tables below.
Forex
|
Lots |
Lots step |
Volume |
Margin set |
Margin |
| 5 | 5 | 500 000 | 1,00% | 5 000 |
| 10 | 5 | 1 000 000 | 3,00% | 30 000 |
| 20 | 10 | 2 000 000 | 5,00% | 100 000 |
| 50 | 30 | 5 000 000 | 10,00% | 500 000 |
| 100 | 50 | 10 000 000 | 20,00% | 2 000 000 |
| 1000 | 900 | 100 000 000 | 50,00% | 50 000 000 |
Let's make calculations on Forex instruments to showcase how it works.
Step 1. The volume will be 5 lots, it corresponds to 500 000 volume in units of the base currency, margin 1 %, so the margin will be 5 000.
Step 2. We open 5 lots more with 3 % margin, the total volume on this step will be 1 000 000 and the margin on this step will be 20 000 (3 % of 500 000 + 5 000 from the first 5 lots on the previous step).
Step 3. We open 10 lots more with 5 % margin, the total volume on this step will be 2 000 000 and the margin on this step will be 70 000 (5 % of 1 000 000 + 20 000 from the previous step).
Step 4. We open 30 lots more with 10 % margin, the total volume on this step will be 5 000 000 and the margin on this step will be 370 000 (10 % of 3 000 000 + 70 000 from the previous step).
Step 5. We open 50 lots more with 20 % margin, the total volume on this step will be 10 000 000 and the margin on this step will be 1 370 000 (20 % of 5 000 000 + 370 000 from the previous step).
Step 6. We open 900 lots more with 50 % margin, the total volume on this step will be 100 000 000 and the margin on this step will be 46 370 000 (50 % of 90 000 000 + 1 370 000 from the previous step).
Metals
|
Lots |
Lots step |
Volume |
Margin set |
Margin |
| 1 | 1 | 100 000 | 5,00% | 5 000 |
| 5 | 4 | 500 000 | 10,00% | 50 000 |
| 10 | 5 | 1 000 000 | 20,00% | 200 000 |
| 25 | 15 | 2 500 000 | 50,00% | 1 250 000 |
| 50 | 25 | 5 000 000 | 100,00% | 5 000 000 |
Indexes
|
Lots |
Lots step |
Volume |
Margin set |
Margin |
| 5 | 5 | 500 000 | 5,00% | 25 000 |
| 10 | 5 | 1 000 000 | 10,00% | 100 000 |
| 25 | 15 | 2 500 000 | 20,00% | 500 000 |
| 50 | 25 | 5 000 000 | 50,00% | 2 500 000 |
| 100 | 50 | 10 000 000 | 100,00% | 10 000 000 |
Crypto
|
Lots |
Lots step |
Volume |
Margin set |
Margin |
| 5 | 5 | 500 000 | 20,00% | 100 000 |
| 10 | 5 | 1 000 000 | 33,00% | 330 000 |
| 20 | 10 | 2 000 000 | 50,00% | 1 000 000 |
| 50 | 30 | 3 000 000 | 100,00% | 3 000 000 |
Floating leverage is not applied during the evaluation stage (i.e., the challenge). All challenges have fixed leverage as specified in the description of each programme.
Read more about Margin set in this article.