@

What is my effective leverage?

Effective Leverage relates to the amount of leverage that your account is using to control the total value of the positions you have open. 

Here is an example:

  • Assume you have a Standard Lot of USD/CAD (100K on Trading Station or 1.00 on MetaTrader 4), which is worth $100,000.
  • Also, assume you have an account that has $20,000.
    • Effectively, your $20,000 is controlling $100,000 and the 'effective leverage' is $100,000/$20,000 = 5 times or 5:1
  • In another examples, assume you open 2 Standard Lots of USD/CAD, which isworth $200,000.
  • Also, assume you have an account that has $20,000.
    • Effectively, your $20,000 is controlling $200,000 and the 'effective leverage' is $200,000/$20,000 = 10 times or 10:1