Dynamic leverage means that the leverage applied to a position changes according to the client's total exposure in that instrument or product group.
Why does leverage change?
Higher leverage is generally available for smaller position sizes.
As total exposure increases:
- maximum leverage decreases; and
- the amount of margin required increases.
Example
An eligible client trading a selected major forex pair may receive the highest leverage tier on a smaller position.
If the client opens additional positions and increases total exposure, the additional exposure moves into lower leverage tiers.
The result is that larger positions require proportionally more margin.
Which platforms support Dynamic Leverage?
Dynamic leverage is available on eligible:
- ThinkTrader accounts; and
- MT5 accounts
under supported ThinkMarkets entities.
What products can use Dynamic Leverage?
The applicable leverage varies by product.
Under the current framework, selected major forex pairs can reach up to 1:5,000, while gold can reach up to 1:2,000 for eligible clients.
Other products have their own leverage settings.
Can margin requirements change around market events?
Yes.
ThinkMarkets can temporarily apply higher margin requirements around specified high-impact events.
Dynamic leverage does not override regulatory leverage restrictions.
Discover more on using Dynamic leverage with ThinkMarkets - https://www.thinkmarkets.com/en/trading-academy/technical-analysis/trading-101-dynamic-leverage/