Upcoming changes to leverage for Indices and Oil products

We would like to inform you about an upcoming adjustment to the leverage settings for our Indices and Oil products. Effective March 9, 2025, the following changes will be implemented:

• Leverage Mode: Indices and Oil will transition to a fixed leverage mode.
• Maximum Leverage: The maximum leverage will be reduced from 1:1000 to 1:500.

 What This Means for You:

• Your existing open positions will be adjusted to the new fixed leverage rates.
• If you currently trade with 1:1000 leverage, you might face margin calls or stop-outs if your account balance is insufficient. Please ensure you have adequate margin or close open trades on affected products before the change date.
• If you currently trade with lower leverage, you will experience an increase in leverage, which could lead to a higher potential loss in the event of a stop-out.

 Here’s an example to Illustrate the Impact:

• Before Adjustment (1:1000 Leverage):
  • For a position valued at 100,000 USD, the margin requirement would be: 100,000 / 1000 = 100 USD
  • Margin maintenance (1:500) would be: 100 x 50% = 50 USD
• After Adjustment (1:500 Leverage):
  • The margin requirement for the same position would increase to: 100,000 / 500 = 200 USD
  • Margin maintenance would then be: 200 x 50% = 100 USD
• Clients with Lower Leverage Settings:
  • Clients who trade with lower leverage will experience an increase in leverage, which may result in higher potential losses in the event of a stop-out.

Example:

Before Adjustment (1:100 Leverage):

For a 10,000 USD deposit and a 100,000 USD position, the maximum loss at a 50% stop-out is 9,500 USD.

After Adjustment (1:500 Leverage):

The maximum potential loss increases to 9,900 USD.

This example demonstrates that due to the reduced leverage, you will require a higher margin to maintain your positions.

For more details on how these changes might affect your trading account, please contact [email protected].