FxPro introduces dynamic leveraging

The FxPro broker introduces dynamic leverage to its offer. The new mechanism is valid for every platform, namely MetaTrader 4 and 5, cTrader and WebTrader. It will also cover all instruments from the group of currency pairs, precious metals, futures, energy, stock indices and CFDs on shares.

What is dynamic leverage and how does it work?

FxPro uses dynamic leveraging, which automatically adapts to the customer's trading positions. With the increase in the amount of funds invested by the trader for particular types of instruments, the maximum leverage value is reduced. This principle has individual application for individual trade instruments. Therefore, if the trader has open positions on many instruments, the lever is calculated separately for each of them.

For example, if a client holds an open long position of 300 lots in total on the USD / JPY pair and then trades on the EUR / USD pair, the previous USD / JPY positions will not affect the margin requirement for the Eurodollar.

The changes introduced to leverage are primarily aimed at reducing the risk associated with a large loss or the emergence of an overdraft in case of unexpected events on one instrument (eg price gap, coup, macroeconomic events).

The method of calculation

The sum of the items is calculated as follows. For example, suppose a trader has positions with a combined volume of 300 buy lots and 200 sell lots. To calculate the required margin, select the side of the transaction with the higher value (sum). In our example, the side with the larger sum is the long position, which means that the 300 lots mentioned will be the benchmark used to calculate the margin requirement. In addition, a trader with 6 open positions (long or short) of 50 lots each, and a trader with one open position of 300 lots (long or short) must have the same deposit as collateral.

More details and tables for each group of instruments are available on the FxPro website.

Tables with instruments