Leverage in Forex and CFDs is a mechanism that allows you to trade positions much larger than your available margin, similar to the principle of a lever, where a small force can move a large object. The leverage ratio increases the amount you can trade relative to your margin.

For example, with a leverage of 1:100, a margin of 100USD allows you to trade up to 10,000 USD. Higher leverage increases both the potential for profit and the risk of loss, as gains and losses are magnified in equal measure.

If your account suffers a certain level of loss and the margin level falls below the required threshold, stop-out may occur. It is important to fully understand the risks before starting to trade.

At FXON, it's possible to change leverage for each account on the FXON portal after opening an account. About changing leverage, please refer to the link below.

Can I change the leverage?

FXON adopts a variable leverage system, where the leverage changes based on equity of your trading account. This variable leverage applies to FX currency pairs (major and minor) as well as precious metal CFDs. The maximum leverage is automatically calculated according to equity on your trading accounts and is applied to all open positions.

For more details, please refer to the page below.

Is leverage automatically adjusted?

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