The leverage ratio in CFD trading is influenced by regulatory rules, client type, account leverage, product-specific leverage, and margin settings. Retail clients face FCA-imposed leverage limits, while professionals may access higher leverage. Product-specific leverage can differ from account leverage and is detailed in product specifications. Margin calculation formulas vary by product type. Leverage and margin conditions may change due to regulations or market conditions, and margin is calculated in the instrument's margin currency.
Types of leverage
| Leverage type | Explanation |
|---|---|
| Overall account leverage | The leverage ratio assigned to your trading account. |
| Product-specific leverage | Some products have fixed leverage or margin settings that may differ from your account leverage. |
Overall account leverage
Retail clients are subject to maximum leverage limits set by the Financial Conduct Authority (FCA), which may vary depending on the asset class. Professional clients may qualify for higher leverage if they meet the required eligibility criteria.
Product-specific leverage
Some products have a set leverage or margin requirement that is independent of your account leverage. This information can usually be found in the product’s Specification under Margin Percentage or related margin settings.
Margin calculation formulas
The required margin depends on the product’s margin calculation mode.
| Margin calculation mode | Formula |
|---|---|
| Forex | Contract size × Lot × Margin percentage / Leverage |
| CFD-Leverage | Contract size × Lot × Open price × Margin percentage / Leverage |
| CFD | Contract size × Open price × Lot × Margin percentage |
| CFD Margin Initial | Margin initial × Lots × Margin percentage |
Important notes
- Margin calculation depends on the product specification.
- Leverage limits and trading conditions may change due to regulatory requirements or market conditions.
- The margin amount is calculated in the instrument’s margin currency and may be automatically converted into your account currency if different.
- Product-specific leverage should be checked before placing a trade.