Experienced traders know that effective risk management is crucial to success in financial market trading. However, building a functioning risk control system is a difficult and rather long process. To make the task simpler, we’re introducing the floating leverage technology, available from April 1st, 2019. It was implemented in collaboration with AMTS, a provider of modern tech solutions for brokers.
How does it work?
This technology is designed to automatically change leverage based on the volume of total notional value of a position. The higher it is, the lower the leverage, and vice versa.
Thus, floating leverage helps limit the market risk, avoid the uncontrolled account overload and prevent the risk of irretrievable loss. It should be mentioned that this technology is most useful for trading who prefer larger trading volumes.
On what account types will floating leverage be used?
Floating leverage is implemented on MT5 and ECN Prime and is available for all currency pairs.
Make sure to examine the table of leverage values for respective notional volumes. Each particular rule of leverage change will be used only if the criteria are met for both rules (total notional value of a position and maximum available leverage size) at the same time.
|
Total notional position |
Maximum leverage available |
|
up to $ 300.000 |
1:1000 |
|
from $300.000 до $ 2.000.000 |
1:500 |
|
from $ 2.000.000- $2.500.000 |
1:200 |
|
from $2.500.000 - $ 3.000.000 |
1:100 |
|
from $3.000.000 - $5.000.000 |
1:50 |
|
from 5.000 000$ |
1:25 |
See FAQ for a detailed example of margin calculation with floating leverage. Please note that there must be a sufficient amount of funds on your account in order to maintain the required margin volume. Otherwise, open positions on your trading accounts may be forcibly closed.
If you have any questions, contact us by email: info@grandcapital.net, via LiveChat on our website or open a support ticket in your Private Office.
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