Currency leverages

Here you can set the margin requirement levels for various assets in each existing margin profile. Currency leverages determines the amount of margin used in the event of a negative balance for each asset. A negative account balance means the broker has subsidized the client by the specified amount. Therefore, the broker bears the risk of exchange rate differences.

To save the entered leverage values, click Save next to the corresponding row.

To set leverage for a single asset, select it in the Asset filter.

To set leverage for multiple assets, select them, click Add values, and set the desired leverage value.

Mechanism description

If an account has balances in multiple currencies, the currency with the largest absolute positive balance on the account will be used to cover the negative balance. The currency leverage fields indicate the leverage applied to the currency.

The default value is 100%, meaning that when calculating the margin used, 100% will be added to the negative balance of the currency (i.e., the leverage value will be equals to two: (100% + 100%) / 100 = 2).

Example of calculations with different leverages: Current balance GBP on the account = -100 GBP. The leverage value for GBP is set to 50%. Accordingly, the leverage size will be calculated as (100% + 50%)/100 = 1.5, and Margin usage on a negative GBP balance will be equal to 100 GBP x 1.5 = 150 GBP.