Leverage lets you control a larger position with a smaller deposit. Understand how margin works, what triggers a margin call - and calculate your requirement instantly.
For illustration only. Margin is shown in USD. Actual requirements depend on live prices and account conditions.
Two sides of the same coin - leverage amplifies your market exposure, margin is the deposit that backs it.
Leverage lets you open a position much larger than your deposit. With 1:500 leverage, $1,000 controls a $500,000 position - magnifying both potential profits and potential losses.
Margin is the amount of your own funds required to open and maintain a leveraged position. It isn't a fee - it's set aside as collateral and released when you close the trade.
Buying 1 lot of EUR/USD at 1.0846 with 1:500 leverage.
Leverage varies by instrument and is capped to manage risk in more volatile markets.
| Asset Class | Max Leverage | Margin Requirement |
|---|---|---|
| Forex Majors | 1:500 | 0.20% |
| Forex Minors & Exotics | 1:200 | 0.50% |
| Metals (Gold & Silver) | 1:500 | 0.20% |
| Indices | 1:500 | 0.20% |
| Energy | 1:500 | 0.20% |
| Shares CFDs | 1:20 | 5.00% |
| Crypto CFDs | 1:200 | 0.50% |
Your margin level shows how healthy your account is. If it falls too low, protective measures kick in.
Equity / Used Margin x 100%. The higher the percentage, the more buffer your account has.
At a 100% margin level you're warned to add funds or reduce exposure before positions are at risk.
If the margin level keeps falling, positions are automatically closed (from 20% on Standard) to protect your account.
While leverage can magnify profits, it equally magnifies losses - you can lose more than your initial deposit. All ABDFX accounts include negative balance protection, but you should only trade with capital you can afford to lose. Use stop-loss orders and manage your risk carefully.
Open an ABDFX account with flexible leverage up to 1:500 and transparent margin conditions.