Exness broker leverage is an important factor in optimizing profits for traders. To effectively use leverage, you need to master its basic information. EX Trading will help provide useful information about leverage, helping you have the most general overview. Let’s read the entire article below.
Concept of Exness broker leverage
Leverage offered by Exness is a financial tool that enables traders to control a significantly larger trading volume than their actual account capital. It is also one of the most popular tools used by traders on the Exness platform.
With leverage, you can create an order with unlimited volume. As long as you have enough money to deposit into Exness to deposit the exchange. This forces traders to comply with the rule of not using leverage indiscriminately. Although it is useful, it is also considered a double-edged sword, so if you lose a lot, your account will burn out faster.
In short, Exness leverage is the trading amount that the broker lends you to invest. Leverage is also a factor that affects the profit and risk of each trading session. If you use leverage properly, your investment capital will certainly be amplified. Thanks to that, you earn more money for your account. Additionally, if you have questions about boom and crash on Exness, see here.
How does Exness broker leverage work?
To use leverage optimally and avoid common misunderstandings (such as rumors about Exness’s unreliability or withdrawal issues), you need to clearly understand its operational mechanism. Before using leverage, you must deposit a certain amount of money, known as margin. Margin and leverage are closely interconnected, illustrated by the formula:
For example:
Margin = Lot * Contract Volume / Leverage Level.
For example, if you have 2 lots of EURUSD, the leverage is 1:2000.
- Lot 2
- The contract volume is 100 000 EUR.
- Leverage level: 2000.
Margin = 2 * 100 000 / 2 000 = 100 EUR (where the margin will always be calculated in the base currency).
See more: Open Exness Account: Latest guide for new traders
How many Exness broker leverage levels are there?
Leverage levels at Exness are quite flexible, depending on the account type, trading platform, and particularly, the equity in the trader’s account. Below are the common leverage levels applied based on account equity:
- Accounts with equity below $1000 USD: The default leverage is 1:2000. It can go up to 1:Unlimited if specific conditions are met.
- Accounts with equity from $1000 USD to $4999.99 USD: The maximum leverage is 1:2000.
- Accounts with equity from $5000 USD to $29999.99 USD: The maximum leverage is 1:1000.
- Accounts with equity above $30000 USD: The maximum leverage is 1:500.
Be careful when using leverage
As analyzed, leverage can significantly boost your profits from a modest initial capital. However, if not managed prudently, it can also lead to rapid losses. Therefore, the primary principle when deciding to use leverage is to have a thorough understanding of it.
Even if you opt for “Unlimited” leverage, the system may automatically adjust the maximum leverage downwards if your equity exceeds a certain threshold. Notably, during periods of high market volatility due to significant news releases or major economic events, Exness will typically limit leverage (often to 1:200 for major currency pairs and gold) to protect clients’ capital. This is one of the measures Exness implements to ensure trader safety.
Instructions for changing Exness broker leverage
Adjusting leverage is a necessary action for traders to optimize their profit strategies and mitigate risks. To change your leverage level, you can follow these steps:
Step 1: Log in to your Personal Area on the Exness website, then select “My Accounts.”
Step 2: For the trading account you wish to modify, click on the three-dots icon (or gear icon, depending on the interface) next to the “Trade” button and select “Change max leverage.”
Step 3: A window will appear, displaying the current leverage level. To change it, click the drop-down arrow and select your desired new leverage level. Finally, confirm your choice by clicking “Set maximum leverage.”
With just a few simple steps, you can adjust your leverage level to suit your strategy and risk appetite.
What is the best Exness broker leverage level to choose?
There isn’t a single “best leverage level” that fits everyone. The most effective leverage choice depends on various factors such as your individual trading strategy, market experience, risk tolerance, and capital. Below is an analysis of some common leverage levels at Exness for your reference:
Exness 1 leverage: unlimited
This is the highest leverage offered by Exness. It might be suitable for professional traders, those looking to execute very large volume trades, or individuals testing different trading strategies. However, it’s crucial to note that the risk of capital loss when using this leverage level is very high.
To use 1:Unlimited leverage, you need to meet the following conditions:
- Account equity must be less than $1,000 USD (specifically, from $0 – $999.99 USD).
- Must have closed at least 10 orders, with a total minimum volume of 5 lots (or 500 cent lots) on a real account.
- Unlimited leverage applies to products such as currency pairs, certain cryptocurrencies, energies, stocks, and selected indices.
See more: Exness Broker Review: Strengths and Weaknesses to know
Exness leverage 1:2000
This leverage level is often considered suitable for new traders or those who prefer relative safety. The not-too-high leverage ratio helps limit the risk of capital loss, making it appropriate for individuals with less experience in the financial markets. 1:2000 leverage applies to accounts with equity from $0 to $4,999.99 USD (it’s the default for accounts under $1000 USD if they don’t qualify for or choose 1:Unlimited).
Exness leverage 1:1000
This leverage level is designed for traders with more experience. It applies to accounts with equity from $5,000 USD to $29,999.99 USD. Note that margin requirements for some instruments may be fixed (e.g., BTCUSD often has a maximum leverage of 1:400). During high-impact news or before weekends and holidays, maximum leverage for currency pairs and gold may be restricted to 1:200.
Exness leverage 1:500
This leverage level applies when the account equity is $30,000 USD or more. Experts consider using 1:500 leverage as a relatively conservative investment level suitable for exploring the market with larger accounts.
Each leverage level has its own advantages and disadvantages. Therefore, there is no “best” or “worst” leverage level, only the one that is “most suitable” for you. To determine your ideal leverage, you need to continuously enhance your knowledge, accumulate experience, and sharpen your market analysis skills. Most importantly, always develop a detailed investment plan to avoid being swayed by the allure of leverage into making emotional decisions and incurring unnecessary losses.
Epilogue
Exness leverage is a powerful financial tool: it not only creates favorable conditions for traders to increase investment opportunities but also comes with significant risks. Hopefully, the information in this article has provided you with a deeper and more comprehensive understanding of leverage. If you have any questions, do not hesitate to seek further information or contact a support team for clarification. We wish you successful trading and profitability on the Exness platform!
