Leverage (also known as trading margin) is a tool that allows traders to control a larger volume of trades with a smaller capital. Using leverage can increase both potential profits and losses, making it essential to understand how it works in order to manage risk effectively.
At Trendo Broker, the leverage offered to traders varies depending on the account type and specific conditions:
Real Accounts
Selectable Leverage: From 1:25 to 1:2000.
Balance Limitation: For accounts with less than $50, the maximum leverage is 1:500.
PAMM and CopyTrade Accounts
Maximum Allowed Leverage: 1:500.
To protect traders' capital during periods of high market volatility, Trendo Broker has implemented temporary leverage adjustments:
Before Major Economic News Releases: 45 to 20 minutes prior to the release, leverage for related symbols is reduced to 1:500.
After Major Economic News Releases: 3 to 20 minutes after the release, leverage for related symbols is reduced to 1:200.
During Market Closure and Opening: 30 minutes before the market closes and until 12 minutes after reopening, leverage for all trading symbols is set to 1:200.
Note: If a trader has used their full margin capacity for hedging trades and the leverage is subsequently reduced, they may encounter an insufficient balance error when closing the trade. In such cases, they must wait for the leverage to return to its original state before closing the position.
Effect on Margin: Higher leverage means a lower margin requirement to open trades, but the risk increases.
Margin Call and Stop-Out Levels: In Trendo Broker, a margin call occurs when the losses of open positions reduce the account's margin level to 100%. A stop-out is triggered when the account’s margin level drops to 70%.
Risk Management: Using high leverage without proper risk management can lead to significant losses. It is advised to use tools such as take-profit and stop-loss orders to manage risk.
For further assistance, you can reach out to Trendo’s 24/7 support team.