HiWayFX is glad to offer a new type of risk management system – Floating Leverage. Floating leverage benefits the clients when they trade large sizes of 3 million USD and up because they are protected from deeper losses associated with high leverage. 

Trades with very high position sizes are vulnerable to large swings in account equity during high market volatility. Automatically decreasing leverage for high position sizes prevents accounts from reaching their stop-out levels too quickly.

The Floating Leverage system automatically adapts the client’s leverage to the total volume of opened positions.

The leverage is calculated per trading instrument, so if a client opens positions in multiple instruments, then the leverage will be calculated separately for each instrument.

Floating leverage is calculated according to the table below:

Notional value of all open positions in US Dollars Standard Account Leverage ECN Account Leverage
0 — 500,000 1:1000 1:300
500,001 — 3,000,000 1:500
3,000,001 — 5,000,000 1:200 1:200
≥ 5,000,001 1:100 1:100
  • Floating leverage is applied only to forex instruments.
  • If the account currency is in a non-USD currency, then the volume is automatically recalculated to USD by using the current conversion rate.
  • If a client has a Standard account and his current leverage is less than 1:500 , for example 1:300, then the following leverage structure will be applied:
Notional value of all open positions in US Dollars Account Leverage
0 — 500,000 1:400
500,001 — 3,000,000
3,000,001 — 5,000,000 1:200
≥ 5,000,001 1:100

 

How do  I calculate margin with Floating Leverage? – See Examples